New Issue: HSBC prices $6.95 million 32.2% reverse convertibles linked to Indymac

By Laura Lutz

Des Moines, Sept. 27 - HSBC USA Inc. priced $6.95 million of 32.2% reverse convertible notes due Dec. 31, 2007 linked to the common stock of Indymac Bancorp, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

At maturity, investors will receive par unless Indymac stock falls below the protection price - 60% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Indymac shares equal to $1,000 divided by the initial share price.

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

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Indymac Bancorp, Inc. (Symbol: IMB)
Amount:	$6,951,000
Maturity:	Dec. 31, 2007
Coupon:	32.2%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Indymac stock falls below $13.446 during the life of the notes and finishes below its initial price, in which case shares of Indymac equal to $1,000 divided by the initial price
Initial share price:	$22.41
Barrier price:	$13.446, 60% of $22.41
Pricing date:	Sept. 25
Settlement date:	Sept. 28
Agent:	HSBC Securities (USA) Inc.
Fees:	2%

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