New Issue: HSBC sells $5.42 million capped gears linked to index basket

By Marisa Wong

Los Angeles, Oct. 5 – HSBC USA Inc. priced $5.42 million of 0% capped gears due Nov. 30, 2021 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket contains the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei 225 index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the Hang Seng index with a 5% weight.

If the basket return is greater than zero, the payout at maturity will be par of $10 plus triple the basket return, subject to a maximum payout of par plus 16%. If the basket return is negative, investors will be exposed to the basket’s decline.

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

Issuer:	HSBC USA Inc.
Issue:	Capped gears
Underlying basket:	Euro Stoxx 50 index (40% weight), FTSE 100 index (20% weight), Nikkei 225 index (20% weight), Swiss Market index (7.5% weight), S&P/ASX 200 index (7.5% weight) and Hang Seng index (5% weight)
Amount:	$5,421,000
Maturity:	Nov. 30, 2021
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 3 times any basket gain, capped at par plus 16%; full exposure to any basket decline
Initial levels:	3,223.19 for Euro Stoxx, 5,927.93 for FTSE, 23,511.62 for Nikkei, 10,308.67 for Swiss, 5,952.315 for S&P/ASX and 23,476.05 for Hang Seng
Pricing date:	Sept. 28
Settlement date:	Sept. 30
Agents:	HSBC Securities (USA) Inc. and UBS Financial Services Inc.
Fees:	2%
Cusip:	40438Q761

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