New Issue: HSBC prices $438,000 14% reverse convertibles linked to Research In Motion

By Jennifer Chiou

New York, May 30 - HSBC USA Inc. priced $438,000 of 14% annualized reverse convertible notes due Dec. 1, 2008 linked to Research In Motion Ltd. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless Research In Motion stock falls below the protection price of $81.078, 60% of the initial price of $135.13, during the life of the notes and finishes below the initial price in which case the payout will be Research In Motion shares equal to $1,000 principal amount divided by the initial price.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Reverse convertible notes
Underlying stock:	Research In Motion Ltd. (Symbol: RIMM)
Amount:	$438,000
Maturity:	Dec. 1, 2008
Coupon:	14%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Research In Motion stock falls below the protection price of $81.078, 60% of the initial price, and finishes below the initial price, in which case Research In Motion shares equal to $1,000 principal amount divided by the initial price
Initial price:	$135.13
Protection price:	$81.078, 60% of $135.13
Pricing date:	May 27
Settlement date:	May 30
Agent:	HSBC Securities (USA) Inc.
Fees:	2.25%

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