New Issue: HSBC prices $1.1 million buffer gears linked to index basket

By Wendy Van Sickle

Columbus, Ohio, Nov. 14 – HSBC USA Inc. priced $1.1 million of 0% buffer gears due Nov. 14, 202 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes 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 1.58 times the basket return. Investors will receive par if the basket declines by 30% or less and will lose 1% for every 1% that the basket declines beyond 30%.

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

Issuer:	HSBC USA Inc.
Issue:	Buffer gears
Underlying basket:	Euro Stoxx 50 (40% weight), FTSE 100 (20% weight), Nikkei 225 (20% weight), Swiss Market (7.5% weight), S&P/ASX 200 (7.5% weight) and Hang Seng (5% weight)
Amount:	$1.1 million
Maturity:	Nov. 14, 2023
Coupon:	0%
Price:	Par of $10
Initial level:	3,699.65 for Stoxxx, 7,359.38 for FTSE, 23,391.87 for Nikkei, 10,309.23 for Swiss, 6,724.111 for S&P/ASX, 27,651.14 for Hang Seng
Payout at maturity:	If basket return is greater than zero, par plus 1.58 times basket return; par if basket declines by 30% or less; 1% loss for every 1% that basket declines beyond 30%
Pricing date:	Nov. 8
Settlement date:	Nov. 14
Agents:	UBS Financial Services Inc. and HSBC Securities (USA) Inc.
Fees:	0%
Cusip:	40438B541

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