New Issue: HSBC USA prices $2.49 million 20.5% notes linked to Rambus

By Angela McDaniels

Seattle, Feb. 27 - HSBC USA Inc. priced a $2.49 million offering of reverse convertible notes due May 29, 2007 linked to the common stock of Rambus Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes will pay 5.125% for an annualized rate of 20.5%. Interest is payable monthly.

The payout at maturity will be par unless Rambus stock falls below the barrier price of $15.25 during the life of the notes and finishes below the initial share price of $21.79, in which case the payout will be a number of Rambus shares equal to $1,000 divided by the initial share price.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Rambus Inc.
Amount:	$2.49 million
Maturity:	May 29, 2007
Coupon:	20.5%, payable monthly
Price:	Par
Payout at maturity:	If Rambus falls below the barrier price during the life of the notes and finishes below the initial share price, 45.89261 Rambus shares; otherwise, par
Initial share price:	$21.79
Barrier price:	$15.25, 70% of $21.79
Pricing date:	Feb. 23
Settlement date:	Feb. 28
Agent:	HSBC Securities (USA) Inc.
Agent fees:	2.25%

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