New Issue: HSBC sells $77,000 16.5% reverse convertibles linked to Silver Wheaton

By Laura Lutz

Des Moines, July 2 - HSBC USA Inc. priced $77,000 of 16.5% reverse convertible notes due Oct. 3, 2008 linked to the common stock of Silver Wheaton Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

At maturity, investors will receive par unless Silver Wheaton stock falls below the protection price - 80% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Silver Wheaton shares equal to $1,000 divided by the initial share price.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Silver Wheaton Corp.
Amount:	$77,000
Maturity:	Oct. 3, 2008
Coupon:	16.5%, paid monthly
Price:	Par
Payout at maturity:	Par in cash unless Silver Wheaton stock falls below $9.352 during the life of the notes and finishes below its initial price, in which case shares of Silver Wheaton equal to $1,000 divided by the initial price
Initial share price:	$11.69
Barrier price:	$9.352, 80% of $11.69
Pricing date:	June 29
Settlement date:	July 5
Agent:	HSBC Securities (USA) Inc.
Fees:	1.65%

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