New Issue: HSBC prices $10.51 million capped gears tied to weighted index basket

By William Gullotti

Buffalo, N.Y., Feb. 12 – HSBC USA Inc. priced $10.51 million of 0% capped gears due March 31, 2025 linked to a weighted basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the Euro Stoxx 50 index with a 40% weight, the Nikkei 225 index with a 25% weight, the FTSE 100 index with a 17.5% weight, the Swiss Market index with a 10% weight and the S&P/ASX 200 index with a 7.5% weight.

The payout at maturity will be par of $10 plus triple any basket gain, up to a maximum return of par plus 22.3%.

Investors will be fully exposed to any basket decline.

UBS Financial Services Inc. and HSBC USA Inc. are the agents.

Issuer:	HSBC USA Inc.
Issue:	Capped gears
Underlying indexes:	Euro Stoxx 50 index (40% weight), Nikkei 225 index (25% weight), FTSE 100 index (17.5% weight), Swiss Market index (10% weight), S&P/ASX 200 index (7.5% weight)
Amount:	$10,510,500
Maturity:	March 31, 2025
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus three times any basket gain, capped at par plus 22.3%; otherwise, 1% loss per 1% decline
Initial levels:	4,639.36 for Euro Stoxx 50, 36,026.94 for Nikkei 225, 7,632.74 for FTSE 100, 11,429.83 for Swiss Market, 7,578.445 for S&P/ASX 200
Pricing date:	Jan. 29
Settlement date:	Jan. 31
Agents:	UBS Financial Services Inc. and HSBC USA Inc.
Fees:	2%
Cusip:	40443B320

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