New Issue: HSBC prices $88,000 19% reverse convertibles linked to VMware

New York, March 10 - HSBC USA Inc. priced $88,000 of 19% reverse convertible notes due June 11, 2008 linked to VMware Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless VMware stock falls below the protection price of $34.515, 65% of the initial price of $53.10, during the life of the notes and finishes below the initial price in which case the payout will be VMware 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:	VMware Inc. (Symbol: VMW)
Amount:	$88,000
Maturity:	June 11, 2008
Coupon:	19%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless VMware stock falls below the protection price of $34.515, 65% of the initial price, and finishes below the initial price, in which case VMware shares equal to $1,000 principal amount divided by the initial price
Initial price:	$53.10
Protection price:	$34.515, 65% of $53.10
Pricing date:	March 6
Settlement date:	March 11
Agent:	HSBC Securities (USA) Inc.
Fees:	2%

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