New Issue: HSBC sells $941,500 three-year trigger gears linked to S&P 500

By Marisa Wong

Morgantown, W.Va., May 4 – HSBC USA Inc. priced $941,500 of 0% trigger gears due April 30, 2021 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 1.255 times the index return. Investors will receive par if the index declines by 25% or less and be fully exposed to the index’s decline from its initial level if it declines by more than 25%.

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

Issuer:	HSBC USA Inc.
Issue:	Trigger gears
Underlying index:	S&P 500
Amount:	$941,500
Maturity:	April 30, 2021
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If index return is greater than zero, par plus 1.255 times index return; par if index return is less than or equal to zero and final index level is greater than or equal to downside threshold; full exposure to index’s decline from initial level if index finishes below downside threshold
Initial index level:	2,639.40
Downside threshold:	1,979.55, 75% of initial level
Pricing date:	April 25
Settlement date:	April 30
Agents:	UBS Financial Services Inc. and HSBC Securities (USA) Inc.
Fees:	None
Cusip:	40435M649

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