New Issue: HSBC USA prices $2.23 million 13.25% reverse convertibles linked to InterDigital

By Jennifer Chiou

New York, Oct. 10 - HSBC USA Inc. priced a $2.23 million issue of 13.25% reverse convertible notes due April 17, 2008 linked to InterDigital, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless InterDigital stock falls below the barrier price of $12.3035 during the life of the notes and finishes below its initial price, in which case payout will be a number of InterDigital 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:	InterDigital, Inc. (Nasdaq: IDCC)
Amount:	$2,225,000
Maturity:	April 17, 2008
Price:	Par
Coupon:	13.25%, payable monthly
Payout at maturity:	If InterDigital stock falls below $12.3035 during the life of the notes and finishes below its initial price, shares of InterDigital stock equal to $1,000 divided by the initial price; otherwise, par in cash
Initial share price:	$22.37
Barrier price:	$12.3035, 55% of initial share price
Pricing date:	Oct. 9
Settlement date:	Oct. 12
Agent:	HSBC Securities (USA) Inc.
Fees:	2.5

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