Published on 8/5/2023 in the Prospect News Structured Products Daily.
New Issue: UBS prices $376,000 trigger autocallable contingent yield notes on tech stocks
By Kiku Steinfeld
Chicago, Aug. 7 – UBS AG, London Branch priced $376,000 of trigger autocallable contingent yield notes due Feb. 26, 2026 linked to the least performing of the common stocks of Apple Inc., Amazon.com, Inc., Alphabet Inc. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a coupon at the rate of 10% per year if each stock closes at or above its coupon barrier, 50% of its initial level, on any related observation date.
The notes will be automatically called at par if the shares of each stock close at or above its initial share price on any quarterly call observation date after six months.
If the notes are not called and the final share price of each stock is greater than or equal to the downside threshold level, 50% of the initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price of the least performing stock is less than its initial share price.
UBS Securities LLC and UBS Investment Bank are the agents.
Issuer: | UBS AG, London Branch
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Issue: | Trigger autocallable contingent yield notes
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Underlying stocks: | Apple Inc., Amazon.com, Inc., Alphabet Inc. and Microsoft Corp.
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Amount: | $376,000
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Maturity: | Feb. 26, 2026
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Coupon: | 10% per year, paid monthly if each stock closes at or above its coupon barrier on any related observation date
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Price: | Par
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Payout at maturity: | Par unless any stock finishes below downside threshold level, in which case 1% loss for each 1% decline of laggard stock from initial level
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Call: | Automatically at par if each stock closes at or above initial level on any quarterly call observation date after six months
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Initial levels: | $149.40 for Apple, $95.82 for Amazon, $91.07 for Alphabet, $254.77 for Microsoft
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Coupon barrier levels: | $74.70 for Apple, $47.91for Amazon, $45.54 Alphabet, $127.39 for Microsoft; 50% of initial levels
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Downside threshold levels: | $74.70 for Apple, $47.91for Amazon, $45.54 Alphabet, $127.39 for Microsoft; 50% of initial levels
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Pricing date: | Feb. 23, 2023
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Settlement date: | Feb. 28, 2023
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Agents: | UBS Securities LLC and UBS Investment Bank
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Fees: | 3%
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Cusip: | 90279FT92
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