New Issue: HSBC USA prices $2 million 16.75% reverse convertibles linked to SanDisk

By Jennifer Chiou

New York, Oct. 24 - HSBC USA Inc. priced $2 million of 16.75% annualized reverse convertible notes due Jan. 28, 2008 linked to the common stock of SanDisk Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless SanDisk stock falls by more than 25% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of SanDisk 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:	SanDisk Corp. (Symbol: SNDK)
Amount:	$2 million
Maturity:	Jan. 28, 2008
Coupon:	16.75% annualized, payable monthly
Price:	Par
Payout at maturity:	If SanDisk stock falls below the barrier price during the life of the notes and the final share price is less than the initial share price, a number of SanDisk shares equal to $1,000 divided by the initial share price; otherwise, par
Initial share price:	$43.46
Barrier price:	$32.595, 75% of initial share price
Pricing date:	Oct. 23
Settlement date:	Oct. 26
Agent:	HSBC Securities (USA) Inc.
Fees:	1.25%

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