HSBC USA to price 14% reverse convertibles linked to Suntech Power

By Angela McDaniels

Seattle, April 5 - HSBC USA Inc. plans to price an offering of reverse convertible notes due Oct. 30, 2007 linked to the American Depositary Receipts of Suntech Power Holdings Co., Ltd., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes will pay 7% for an annualized rate of 14%. Interest will be payable monthly.

The payout at maturity will be par unless Suntech Power stock falls by more than 25% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Suntech Power shares equal to $1,000 divided by the initial share price.

The notes are expected to price on April 25 and settle on April 30.

HSBC Securities (USA) Inc. will be the agent.

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