New Issue: HSBC prices $1.45 million capped buffer gears on Vanguard FTSE EM ETF

By Marisa Wong

Morgantown, W.Va., June 2 – HSBC USA Inc. priced $1.45 million of 0% capped buffer gears due May 31, 2018 linked to the Vanguard FTSE 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 1.5 times the ETF return, subject to a maximum return of 27%. Investors will receive par if the ETF declines by 10% or less and lose 1% for every 1% that the ETF declines beyond 10%.

HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as agent.

Issuer:	HSBC USA Inc.
Issue:	Capped buffer gears
Underlying ETF:	Vanguard FTSE Emerging Markets exchange-traded fund
Amount:	$1,450,600
Maturity:	May 31, 2018
Coupon:	0%
Price:	Par
Payout at maturity:	If the ETF return is greater than zero, par plus 1.5 times the ETF return, subject to a maximum return of 27%; par if the ETF declines by 10% or less; 1% loss for every 1% decline beyond 10%
Initial price:	$33.50
Downside threshold:	90% of initial price
Pricing date:	May 25
Settlement date:	May 31
Agents:	HSBC Securities (USA) Inc. and UBS Financial Services Inc.
Fees:	2%
Cusip:	40434N192

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