HSBC to issue 17% reverse convertibles linked to Freeport-McMoRan

By Jennifer Chiou

New York, Aug. 6 - HSBC USA Inc. plans to price 17% annualized reverse convertible notes due Feb. 28, 2008 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable monthly.

At maturity, investors will receive par unless Freeport-McMoRan stock falls below the protection price - 80% 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 Freeport-McMoRan shares equal to $1,000 divided by the initial share price.

The notes will price on Aug. 24 and settle on Aug. 29.

HSBC Securities (USA) Inc. is the agent.

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