New Issue: HSBC sells $9.28 million capped trigger gears tied to MSCI EM

By Taylor Fox

New York, Feb. 22 – HSBC USA Inc. priced $9.28 million of 0% capped trigger gears due Jan. 31, 2024 linked to the MSCI Emerging Markets index, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10 plus double any index gain, up to a maximum return of par plus 31%.

If the index falls by up to 25%, the payout will be par.

Otherwise, investors will be fully exposed to any losses.

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

Issuer:	HSBC USA Inc.
Issue:	Capped trigger gears
Underlying index:	MSCI Emerging Markets index
Amount:	$9,276,500
Maturity:	Jan. 31, 2024
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus two times any index gain, capped at par plus 31%; if index falls by up to 25%, par; otherwise, 1% for each 1% decline from the initial level of the index
Initial level:	1,371.42
Downside threshold:	1,028.565, 75% of initial level
Pricing date:	Jan. 27
Settlement date:	Jan. 29
Agents:	UBS Financial Services Inc. and HSBC Securities (USA) Inc.
Fees:	2.5%
Cusip:	40438U101

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