New Issue: HSBC prices $1.411 million 14.5% reverse convertibles linked to Bear Stearns

New York, Feb. 27 - HSBC USA Inc. priced $1.411 million of 14.5% reverse convertible notes due May 30, 2008 linked to Bear Stearns Cos. Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless Bear Stearns stock falls below the protection price of $51.888, 60% of the initial price of $86.48, during the life of the notes and finishes below the initial price in which case the payout will be Bear Stearns 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:	Bear Stearns Cos. Inc. (Symbol: BSC)
Amount:	$1.411 million
Maturity:	May 30, 2008
Coupon:	14.5%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Bear Stearns stock falls below the protection price of $51.888, 60% of the initial price, and finishes below the initial price, in which case Bear Stearns shares equal to $1,000 principal amount divided by the initial price
Initial price:	$86.48
Protection price:	$51.888, 60% of $86.48
Pricing date:	Feb. 26
Settlement date:	Feb. 29
Agent:	HSBC Securities (USA) Inc.
Fees:	1.75%

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