New Issue: HSBC prices $385,000 10.5% reverse convertibles linked to Deere

By Jennifer Chiou

New York, Oct. 19 - HSBC USA Inc. priced $385,000 of 10.5% annualized reverse convertible notes due April 23, 2008 linked to Deere & Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless Deere stock falls below the protection price of $122.04, 80% of the initial price of $152.55, during the life of the notes and finishes below the initial price, in which case the payout will be a number of Deere 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:	Deere & Co. (Symbol: DE)
Amount:	$385,000
Maturity:	April 23, 2008
Coupon:	10.5% annualized, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Deere stock falls below the protection price of $122.04, 80% of the initial price, and finishes below the initial price, in which case Deere a number of shares equal to $1,000 principal amount divided by the initial price.
Initial price:	$152.55
Protection price:	$122.04, 80% of $152.55
Pricing date:	Oct. 18
Settlement date:	Oct. 23
Agent:	HSBC Securities (USA) Inc.
Fees:	2%

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