New Issue: HSBC sells $3.83 million capped gears linked to index basket

By Kiku Steinfeld

Chicago, July 6 – HSBC USA Inc. priced $3.83 million of 0% capped gears due Aug. 31, 2022 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket contains the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 25% weight, the Nikkei 225 index with a 17.5% weight, the Swiss Market index with a 10% weight and the S&P/ASX 200 index with a 7.5% weight.

If the basket return is greater than zero, the payout at maturity will be par of $10 plus triple the basket return, subject to a maximum payout of par plus 13.7%. If the basket return is negative, investors will be exposed to the basket’s decline.

HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.

Issuer:	HSBC USA Inc.
Issue:	Capped gears
Underlying basket:	Euro Stoxx 50 index (40% weight), FTSE 100 index (25% weight), Nikkei 225 index (17.5% weight), Swiss Market index (10% weight), S&P/ASX 200 index (7.5% weight)
Amount:	$3,826,980
Maturity:	Aug. 31, 2022
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 3 times any basket gain, capped at par plus 13.7%; full exposure to any basket decline
Initial levels:	4,089.91 for Euro Stoxx, 7,072.97 for FTSE, 29,048.02 for Nikkei, 12,009.17 for Swiss, 7,307.289 for S&P/ASX
Pricing date:	June 28
Settlement date:	June 30
Agents:	HSBC Securities (USA) Inc. and UBS Financial Services Inc.
Fees:	2%
Cusip:	40439K813

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