New Issue: HSBC prices $4.77 million capped gears linked to iShares MSCI EM

By Angela McDaniels

Tacoma, Wash., Aug. 1 – HSBC USA Inc. priced $4.77 million of 0% capped gears due Sept. 30, 2020 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 three times the ETF return, subject to a maximum return of 16.18%. If the ETF return is negative, investors will have one-to-one exposure to the decline.

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

Issuer:	HSBC USA Inc.
Issue:	Capped gears
Underlying ETF:	iShares MSCI Emerging Markets ETF
Amount:	$4,772,500
Maturity:	Sept. 30, 2020
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If ETF return is greater than zero, par plus three times ETF return, subject to 16.18% maximum return; one-to-one exposure to any ETF decline
Initial share price:	$42.70
Pricing date:	July 26
Settlement date:	July 31
Underwriters:	UBS Financial Services Inc. and HSBC Securities (USA) Inc.
Fees:	2%
Cusip:	40436B469

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