New Issue: HSBC sells $3.91 million capped trigger gears tied to Russell 2000

By Marisa Wong

Morgantown, W.Va., June 2 – HSBC USA Inc. priced $3.91 million of 0% capped trigger gears due May 31, 2019 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index return is greater than zero, the payout at maturity will be par of $10 plus 2 times the index return, subject to a maximum return of 39.5%. Investors will receive par if the index declines by 25% or less and be fully exposed to the index’s decline from its initial level if it declines by more than 25%.

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

Issuer:	HSBC USA Inc.
Issue:	Capped trigger gears
Underlying index:	Russell 2000
Amount:	$3,907,800
Maturity:	May 31, 2019
Coupon:	0%
Price:	Par
Payout at maturity:	If index return is greater than zero, par plus 2 times the gain, capped at 39.5%; par if the index declines by 25% or less; full exposure to the index’s decline from its initial level if it declines by more than 25%
Initial index level:	1,141.024
Threshold level:	855.768, 75% of initial level
Pricing date:	May 25
Settlement date:	May 31
Agents:	HSBC Securities (USA) Inc. and UBS Financial Services Inc.
Fees:	2.5%
Cusip:	40434N226

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