HSBC plans capped buffer gears tied to Vanguard FTSE Emerging Markets

By Angela McDaniels

Tacoma, Wash., April 29 – HSBC USA Inc. plans to price 0% capped buffer gears due May 31, 2018 linked to the Vanguard FTSE Emerging Markets exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

If the ETF return is greater than zero, the payout at maturity will be par of $10 plus 1.5 times the ETF return, subject to a maximum return that is expected to be 26% to 28% and will be set at pricing. Investors will receive par if the ETF declines by 10% or less and lose 1% for every 1% that the ETF declines beyond 10%.

HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as agent.

The notes are expected to price May 25.

The Cusip number is 40434N192.

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