New Issue: HSBC sells $3.57 million capped trigger gears tied to SPDR S&P 500 ETF

By Marisa Wong

Los Angeles, Oct. 5 – HSBC USA Inc. priced $3.57 million of 0% capped trigger gears due Dec. 30, 2021 linked to the SPDR S&P 500 exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par plus 2 times any ETF gain, capped at par plus 16.75%.

If the ETF falls by up to 20%, the payout will be par.

Otherwise, investors will be fully exposed to any losses.

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

Issuer:	HSBC USA Inc.
Issue:	Capped trigger gears
Underlying ETF:	SPDR S&P 500 ETF
Amount:	$3,568,500
Maturity:	Dec. 30, 2021
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 2 times any ETF gain, capped at par plus 16.75%; if ETF falls by up to 20%, par; otherwise, 1% loss for each 1% decline below initial value
Initial value:	$328.73
Downside threshold:	$262.98, 80% of initial value
Pricing date:	Sept. 25
Settlement date:	Sept. 30
Agents:	UBS Financial Services Inc. and HSBC Securities (USA) Inc.
Fees:	None
Cusip:	40438Q787

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