New Issue: HSBC sells $8.53 million capped gears linked to iShares MSCI EM ETF

By Sarah Lizee

Olympia, Wash., May 31 – HSBC USA Inc. priced $8.53 million of 0% capped gears due July 31, 2019 linked to the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the ETF return is greater than zero, the payout at maturity will be par of $10 plus 3 times the ETF return, subject to a maximum gain of 17.9%. If the ETF return is negative, investors will be exposed to the ETF’s decline.

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

Issuer:	HSBC USA Inc.
Issue:	Capped gears
Underlying ETF:	iShares MSCI Emerging Markets ETF
Amount:	$8,353,750
Maturity:	July 31, 2019
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If the ETF return is greater than zero, par plus 3 times the ETF return, subject to a maximum gain of 17.9%; if ETF return is negative, investors will be exposed to the ETF’s decline
Initial price:	$46.43
Pricing date:	May 25
Settlement date:	May 31
Agents:	UBS Financial Services Inc. and HSBC Securities (USA) Inc.
Fees:	2%
Cusip:	40435M391

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