New Issue: HSBC prices $0.1 million 14% reverse convertibles linked to Foster Wheeler

New York, May 6 - HSBC USA Inc. priced $0.1 million of 14% reverse convertible notes due Nov. 7, 2008 linked to Foster Wheeler Ltd. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless Foster Wheeler stock falls below the protection price of $41.1905, 65% of the initial price of $63.37, during the life of the notes and finishes below the initial price in which case the payout will be Foster Wheeler shares equal to $1,000 principal amount divided by the initial price.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Foster Wheeler Ltd. (Symbol: FWLT)
Amount:	$0.1 million
Maturity:	Nov. 7, 2008
Coupon:	14%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Foster Wheeler stock falls below the protection price of $41.1905, 65% of the initial price, and finishes below the initial price, in which case Foster Wheeler shares equal to $1,000 principal amount divided by the initial price
Initial price:	$63.37
Protection price:	$41.1905, 65% of $63.37
Pricing date:	May 2
Settlement date:	May 7
Agent:	HSBC Securities (USA) Inc.
Fees:	2.25%

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