HSBC plans to price capped gears linked to global fund basket

By Angela McDaniels

Tacoma, Wash., Aug. 2 – HSBC USA Inc. plans to price 0% capped gears due Oct. 31, 2017 linked to an equally weighted basket consisting of the WisdomTree India Earnings fund, the iShares MSCI Brazil Capped exchange-traded fund and the iShares China Large-Cap exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

If the basket return is greater than zero, the payout at maturity will be par of $10 plus three times the basket return, subject to a maximum gain that is expected to be 20.5% to 23.5% and will be set at pricing. If the basket return is negative, investors will experience a loss of principal that is proportionate to the decline of the basket.

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

The notes will price Aug. 12.

The Cusip number is 40434V236.

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