New Issue: HSBC USA sells $1.129 million 14.4% notes linked to Goldcorp stock

By Laura Lutz

Washington, Dec. 21 - HSBC USA Inc. priced a $1.129 million issue of 14.4% reverse convertible notes due June 26, 2007 linked to Goldcorp Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par in cash unless Goldcorp stock falls below the barrier price of $20.70 during the life of the notes and finishes below its initial price, in which case payout will be a number of Goldcorp shares equal to $1,000 divided by the initial share price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Goldcorp Inc. stock
Amount:	$1.129 million
Maturity:	June 26, 2007
Coupon:	14.4%, paid monthly
Price:	Par
Payout at maturity:	Par in cash unless Goldcorp stock falls below $20.70 during the life of the notes and finishes below its initial price, in which case 36.2319 shares of Goldcorp stock
Initial share price:	$27.60
Barrier price:	$20.70, 75% of initial share price
Pricing date:	Dec. 20
Settlement date:	Dec. 26
Agent:	HSBC Securities (USA) Inc.
Agent fee:	2.25%

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