New Issue: HSBC prices $1.19 million of 14.6% reverse convertibles linked to iShares MSCI Brazil

By Laura Lutz

Des Moines, April 11 - HSBC USA Inc. priced $1.19 million of 14.6% annualized reverse convertible notes due Oct. 15, 2008 linked to shares of the iShares MSCI Brazil index fund, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

If the shares fall below the protection 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. will be the agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	iShares MSCI Brazil index fund
Amount:	$1,185,000
Maturity:	Oct. 15, 2008
Coupon:	14.6%, paid monthly
Price:	Par
Payout at maturity:	If shares fall below $58.765 during the life of the notes and finish below initial price, shares equal to par divided by the initial price; otherwise, par
Initial price:	$83.95
Barrier price:	$58.765, 70% of $83.95
Pricing date:	April 10
Settlement date:	April 15
Agent:	HSBC Securities (USA) Inc.
Fees:	1.75%

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