New Issue: HSBC USA prices $0.628 million 12.5% reverse convertibles linked to Apple Computer

By Jennifer Chiou

New York, Oct. 24 - HSBC USA Inc. priced a $0.628 million issue of 12.5% reverse convertible notes due Oct. 28, 2007 linked to Apple Computer, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless Apple Computer stock declines by 25% or more during the life of the notes and it finishes below the initial price, in which case investors will receive a number of Apple Computer shares equal to $1,000 divided by the initial price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Apple Computer, Inc.
Amount:	$0.628 million
Maturity:	Oct. 28, 2007
Coupon:	12.5%
Price:	Par
Payout at maturity:	Par unless Apple Computer stock falls by 25% or more during the life of the notes and it finishes below the initial price, in which case a number of Apple Computer shares equal to $1,000 divided by the initial price
Initial price:	$79.97
Barrier price:	$59.98, 75% of the initial price
Pricing date:	Oct. 20
Settlement date:	Oct. 26
Agent:	HSBC Securities (USA) Inc.

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