New Issue: HSBC sells $5.57 million five-year trigger gears linked to S&P 500

By Marisa Wong

Morgantown, W.Va., May 8 – HSBC USA Inc. priced $5.57 million of 0% trigger gears due April 29, 2022 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index return is greater than zero, the payout at maturity will be par of $10 plus 1.27 times the index return.

Investors will receive par if the index declines by 40% or less and be fully exposed to the index’s decline from its initial level if it declines by more than 40%.

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

Issuer:	HSBC USA Inc.
Issue:	Trigger gears
Underlying index:	S&P 500 index
Amount:	$5,567,500
Maturity:	April 29, 2022
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 1.27 times any index gain; par if the index declines by 40% or less; full exposure to the index’s decline from its initial level if it declines by more than 40%
Initial level:	2,388.61
Downside threshold:	1,433.17, 60% of initial level
Pricing date:	April 25
Settlement date:	April 28
Agents:	UBS Financial Services Inc. and HSBC Securities (USA) Inc.
Fees:	3.5%
Cusip:	40435D797

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