New Issue: HSBC prices $5.04 million capped trigger gears tied to iShares MSCI EM

By Susanna Moon

Chicago, July 31 – HSBC USA Inc. priced $5.04 million of 0% trigger gears due July 29, 2021 linked to the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10 plus double any fund gain, up to a maximum return of 38.5%.

If the fund falls by up to the 75% downside threshold, the payout will be par.

Otherwise, investors will be fully exposed to any losses.

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

Issuer:	HSBC USA Inc.
Issue:	Trigger gears
Underlying asset:	iShares MSCI Emerging Markets ETF
Amount:	$5,037,140
Maturity:	July 29, 2021
Coupon:	0%
Price:	Par
Payout at maturity:	If fund gains, par plus 2 times return, capped at 38.5%; if fund falls by up to 25%, par; otherwise, 1% loss per 1% decline
Initial level:	$44.53
Trigger level:	$33.40, 75% of initial level
Pricing date:	July 26
Settlement date:	July 31
Agents:	UBS Financial Services Inc. and HSBC Securities (USA) Inc.
Fees:	2.5%
Cusip:	40435X827

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