New Issue: HSBC prices $675,000 18.2% reverse convertibles linked to iShares MSCI Brazil

By Laura Lutz

Des Moines, Dec. 10 - HSBC USA Inc. priced $675,000 of 18.2% reverse convertible notes due March 12, 2008 linked to shares of the iShares MSCI Brazil index fund, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

If the shares fall below the barrier price - 70% of the initial price - during the life of the notes and finish below the initial price, the payout at maturity will be a number of shares equal to par divided by the initial price.

Otherwise, the payout will be par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying shares:	iShares MSCI Brazil index fund
Amount:	$675,000
Maturity:	March 12, 2008
Coupon:	18.2%, paid monthly
Price:	Par
Payout at maturity:	If shares fall below $59.969 during the life of the notes and finish below the initial price, shares equal to par divided by the initial price; otherwise, par
Initial price:	$85.67
Barrier price:	$59.969, 70% of $85.67
Pricing date:	Dec. 7
Settlement date:	Dec. 12
Agent:	HSBC Securities (USA) Inc.
Fees:	1.75%

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