New Issue: HSBC sells $3.61 million capped gears linked to S&P Midcap 400 ETF

By Marisa Wong

Los Angeles, Aug. 4 – HSBC USA Inc. priced $3,607,650 of 0% capped gears due Sept. 30, 2021 linked to the S&P Midcap 400 ETF trust, according to a 424B2 filing with the Securities and Exchange Commission.

If the ETF return is greater than zero, the payout at maturity will be par plus 3 times the ETF return, subject to a maximum payout of par plus 18%. If the ETF return is less than zero, investors will have full exposure to the decline.

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

Issuer:	HSBC USA Inc.
Issue:	Capped gears
Underlying ETF:	S&P Midcap 400 ETF trust
Amount:	$3,607,650
Maturity:	Sept. 30, 2021
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 3 times any ETF gain, capped at par plus 18%; full exposure to any losses
Initial price:	$336.78
Pricing date:	July 28
Settlement date:	July 31
Agents:	UBS Financial Services Inc. and HSBC Securities (USA) Inc.
Fees:	2%
Cusip:	40438J387

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