HSBC to price 20% knock-in reverse convertibles linked to Dogs of the Dow

By Susanna Moon

Chicago, June 9 - HSBC USA Inc. plans to price 20% annualized knock-in reverse convertible securities due Dec. 30, 2008 linked to a basket consisting of the Dogs of the Dow stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the common stocks of Bank of America Corp., Citigroup Inc., AT&T Inc., Pfizer Inc., JPMorgan Chase & Co., Merck & Co., Inc., General Electric Co., Verizon Communications Inc., General Motors Corp. and E. I. du Pont de Nemours and Co.

Interest will be payable monthly.

The payout at maturity will be par unless the worst performing stock falls below its knock-in price - 50% of its initial price - during the life of the notes and finishes below the initial price, in which case the payout will be a number of the worst performing shares equal to par divided by the initial stock price.

The securities are expected to price on June 25 and settle on June 30.

HSBC Securities (USA) Inc. will be the agent.

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