New Issue: HSBC prices $1.72 million capped buffer gears on Energy Select Sector SPDR fund

By Wendy Van Sickle

Columbus, Ohio, Feb. 1 – HSBC USA Inc. priced $1.72 million of 0% capped buffer gears due Feb. 28, 2018 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 2 times the fund return, subject to a maximum return of 12%. Investors will receive par if the fund 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:	Energy Select Sector SPDR fund
Amount:	$1,722,400
Maturity:	Feb. 28, 2018
Coupon:	0%
Price:	Par
Payout at maturity:	If the fund return is greater than zero, par plus 2 times the fund return, subject to a maximum return of 12%; par if the fund declines by 10% or less; 1% loss for every 1% decline beyond 10%
Initial price:	$75.01
Downside threshold:	90% of initial price
Pricing date:	Jan. 26
Settlement date:	Jan. 31
Agents:	HSBC Securities (USA) Inc. and UBS Financial Services Inc.
Fees:	0.5%
Cusip:	40435C740

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