New Issue: HSBC USA sells $1.23 million 24% notes linked to Research In Motion stock

By Jennifer Chiou

New York, Jan. 10 - HSBC USA Inc. priced a $1.23 million issue of reverse convertible notes due July 11, 2008 linked to Research In Motion Ltd. stock, according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 12% for an annualized rate of 24%. Interest is payable monthly.

The payout at maturity will be par in cash unless Research In Motion stock falls below the barrier price of $67.571 during the life of the notes and finishes below its initial price, in which case payout will be a number of Research In Motion 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:	Research In Motion Ltd. (Symbol: RIMM)
Amount:	$1,234,000
Maturity:	July 11, 2008
Coupon:	24%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Research In Motion stock falls below $67.571 during the life of the notes and finishes below its initial price, in which case 10.3595 shares of Research In Motion stock
Initial share price:	$96.53
Barrier price:	$67.571, 70% of initial share price
Pricing date:	Jan. 8
Settlement date:	Jan. 11
Agent:	HSBC Securities (USA) Inc.
Fees:	3.25%

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