New Issue: HSBC USA prices $2.297 million 15% reverse convertibles linked to Frontier Oil

By Jennifer Chiou

New York, Oct. 24 - HSBC USA Inc. priced a $2.297 million issue of 15% reverse convertible notes due Jan. 26, 2007 linked to Frontier Oil Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless Frontier Oil stock declines by 30% or more during the life of the notes and it finishes below the initial price, in which case investors will receive a number of Frontier Oil shares equal to $1,000 divided by the initial price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Frontier Oil Corp.
Amount:	$2.297 million
Maturity:	Jan. 26, 2007
Coupon:	15%
Price:	Par
Payout at maturity:	Par unless Frontier Oil stock falls by 30% or more during the life of the notes and it finishes below the initial price, in which case a number of Frontier Oil shares equal to $1,000 divided by the initial price
Initial price:	$29.65
Barrier price:	$20.76, 70% of the initial price
Pricing date:	Oct. 20
Settlement date:	Oct. 26
Agent:	HSBC Securities (USA) Inc.

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