New Issue: HSBC prices $477,000 20% reverse convertibles linked to Research In Motion

By Susanna Moon

Chicago, Jan. 29 - HSBC USA Inc. priced $477,000 of 20% reverse convertible notes due April 28, 2008 linked to the stock of Research In Motion Ltd., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

At maturity, investors will receive par unless the stock falls below the barrier price - 70% 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 Research In Motion shares equal to $1,000 divided by the initial share price.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Research In Motion Ltd. (Nasdaq: RIMM)
Amount:	$477,000
Maturity:	April 28, 2008
Coupon:	20%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless the stock falls below the barrier price during the life of the notes and finishes below its initial price, in which case 10.8613 Research In Motion shares
Initial share price:	$92.07
Barrier price:	$64.449, or 70% of initial share price
Pricing date:	Jan. 28
Settlement date:	Jan. 31
Agent:	HSBC Securities (USA) Inc.
Fees:	1.97%

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