New Issue: HSBC USA prices $1.486 million 22.8% reverse convertibles linked to Banco Bradesco

By Jennifer Chiou

New York, Aug. 29 - HSBC USA Inc. priced a $1.486 million issue of 22.8% reverse convertible notes due Nov. 30, 2006 linked to Banco Bradesco SA American Depositary Shares, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless Banco Bradesco ADSs fall by 20% or more during the life of the notes and they finish below the initial price, in which case investors will receive a number of Banco Bradesco shares equal to $1,000 divided by the initial price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying security:	Banco Bradesco SA American Depositary Shares
Amount:	$1.486 million
Maturity:	Nov. 30, 2006
Price:	Par
Coupon:	22.8%
Payout at maturity:	Par unless Banco Bradesco ADSs fall by 20% or more during the life of the notes and they finish below the initial price, in which case shares of Banco Bradesco stock equal to par divided by $31.22, with fractional shares paid in cash
Initial price:	$31.22
Pricing date:	Aug. 25
Settlement date:	Aug. 31
Agent:	HSBC Securities (USA) Inc.

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