New Issue: HSBC prices $7.53 million capped trigger gears linked to iShares MSCI EM ETF

By Wendy Van Sickle

Columbus, Ohio, Sept. 29 – HSBC USA Inc. priced $7.53 million of 0% capped trigger gears due Sept. 30, 2019 linked to the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the fund return is greater than zero, the payout at maturity will be par of $10 plus 2 times the fund return, subject to a maximum return of 42%. Investors will receive par if the fund declines by 25% or less and be fully exposed to the fund’s decline from its initial level if it declines by more than 25%.

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

Issuer:	HSBC USA Inc.
Issue:	Capped trigger gears
Underlying ETF:	iShares MSCI Emerging Markets
Amount:	$7,532,200
Maturity:	Sept. 30, 2019
Coupon:	0%
Price:	Par
Payout at maturity:	If ETF return is greater than zero, par plus 2 times the gain, capped at 42%; par if the ETF declines by 25% or less; full exposure to ETF’s decline from its initial level if it declines by more than 25%
Initial ETF price:	$37.61
Threshold level:	$28.21, 75% of initial price
Pricing date:	Sept. 27
Settlement date:	Sept. 30
Agents:	HSBC Securities (USA) Inc. and UBS Financial Services Inc.
Fees:	2.5%
Cusip:	40435B817

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