HSBC to price 31% knock-in reverse convertibles linked to Dogs of the Dow

By Susanna Moon

Chicago, July 9 - HSBC USA Inc. plans to price 31% annualized knock-in reverse convertible securities due Jan. 30, 2009 linked to a basket consisting of the July 2008 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 any stock falls below its knock-in price - 50% of its initial price - during the life of the notes and the worst-performing stock finishes below its initial price, in which case the payout will be a number of shares of the worst-performing stock equal to par divided by the initial price of that stock.

The securities are expected to price on July 28 and settle on July 31.

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

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