New Issue: HSBC sells $13.85 million capped gears linked to index basket

By Sarah Lizee

Olympia, Wash., Feb. 1 – HSBC USA Inc. priced $13.85 million of 0% capped gears due March 31, 2020 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 20% weight, the Nikkei 225 index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the Hang Seng index with a 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 gain of 27%. If the basket return is negative, investors will be exposed to the basket’s decline.

HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as selling agent.

Issuer:	HSBC USA Inc.
Issue:	Capped gears
Underlying indexes:	Euro Stoxx 50 (40% weight), FTSE 100 (20% weight), Nikkei 225 (20% weight), Swiss Market (7.5% weight), S&P/ASX 200 (7.5% weight) and Hang Seng (5% weight)
Amount:	$13,851,900
Maturity:	March 31, 2020
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If basket return is greater than zero, par plus three times basket return, subject to 27% maximum gain; if basket return is negative, exposure to decline
Initial levels:	3,153.42 for Euro Stoxx, 6,833.93 for FTSE, 20,664.64 for Nikkei, 8,940.52 for Swiss Market, 5,874.166 for S&P/ASX and 27,531.68 for Hang Seng
Pricing date:	Jan. 29
Settlement date:	Jan. 31
Underwriter:	HSBC Securities (USA) Inc. with UBS Financial Services Inc. as selling agent
Fees:	2%
Cusip:	40436A529

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