HSBC to issue 18% autocallable reverse convertibles linked to RIM

By Susanna Moon

Chicago, June 12 - HSBC USA Inc. plans to price 18% annualized autocallable reverse convertible notes due Dec. 30, 2008 linked to the common stock of Research In Motion Ltd., according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable monthly.

The notes will be automatically called if the closing price of the stock is greater than its initial price on Sept. 30, 2008. The call amount will be par plus accrued interest.

At maturity, investors will receive par unless RIM stock falls below the protection price - 65% 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 RIM shares equal to par divided by the initial share price.

The notes are expected to price on June 16 and settle on June 30.

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

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