New Issue: HSBC sells $12.75 million capped gears linked to Energy Select Sector SPDR fund

By Wendy Van Sickle

Columbus, Ohio, Feb. 15 – HSBC USA Inc. priced $12.75 million of 0% capped gears due April 20, 2020 linked to the Energy Select Sector SPDR 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 29.14%. 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:	Energy Select Sector SPDR fund
Amount:	$12,750,500
Maturity:	April 20, 2020
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 29.14%; if ETF return is negative, investors will be exposed to the ETF’s decline
Initial price:	$64.84
Pricing date:	Feb. 13
Settlement date:	Feb. 19
Agents:	UBS Financial Services Inc. and HSBC Securities (USA) Inc.
Fees:	0%
Cusip:	40436A321

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