New Issue: HSBC prices $1.74 million capped gears linked to global fund basket

By Devika Patel

Knoxville, Tenn., Sept. 20 – HSBC USA Inc. priced $1.74 million of 0% capped gears due Nov. 21, 2017 linked to an equally weighted basket consisting of the WisdomTree India Earnings fund, the iShares MSCI Brazil Capped exchange-traded fund and the iShares China Large-Cap exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the basket return is greater than zero, the payout at maturity will be par of $10 plus three times the basket return, subject to a maximum gain of 22.5%.

If the basket return is negative, investors will lose 1% for each 1% decline of the basket.

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

Issuer:	HSBC USA Inc.
Issue:	Capped gears
Underlying basket:	WisdomTree India Earnings fund, iShares MSCI Brazil Capped ETF, iShares China Large-Cap ETF
Amount:	$1,735,000
Maturity:	Nov. 21, 2017
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus three times any basket gain, capped at 22.5%; otherwise, 1% loss for each 1% decline
Initial fund levels:	$21.62 for WisdomTree, $32.67 for iShares MSCI Brazil and $37.73 for iShares China
Pricing date:	Sept. 16
Settlement date:	Sept. 21
Agent:	UBS Financial Services Inc. and HSBC Securities (USA) Inc.
Fees:	2%
Cusip:	40435B825

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