New Issue: HSBC sells $5.2 million capped trigger gears linked to iShares MSCI EM

By Marisa Wong

Morgantown, W.Va., April 6 – HSBC USA Inc. priced $5.2 million of 0% capped trigger gears due March 31, 2020 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 two times the fund return, subject to a maximum return of 42.5%. Investors will receive par if the fund declines by 25% or less and will 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 ETF
Amount:	$5,195,150
Maturity:	March 31, 2020
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 2 times any fund gain, capped at 42.5%; par if the fund declines by 25% or less; full exposure to the fund’s decline from its initial level if it declines by more than 25%
Initial price:	$39.81
Downside threshold:	$29.86, 75% of initial price
Pricing date:	March 28
Settlement date:	March 31
Agents:	UBS Financial Services Inc. and HSBC Securities (USA) Inc.
Fees:	2.5%
Cusip:	40435H756

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