Published on 12/18/2023 in the Prospect News Structured Products Daily.
New Issue: UBS prices $3.39 million trigger autocallables linked to American Airlines, Alphabet
By Angela McDaniels
Tacoma, Wash., Dec. 18 – UBS AG, London Branch priced $3.39 million of trigger autocallable contingent yield notes with memory interest due April 6, 2026 linked to the lesser performing of the common stock of American Airlines Group Inc. and the class C capital stock of Alphabet Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If each stock closes at or above its downside threshold level, 50% of the initial share price, on a monthly observation date, the notes pay a contingent monthly coupon at the rate of 18.25% per year plus any previously unpaid contingent coupons.
After six months, the notes will be automatically called at par if each stock closes at or above its initial share price on any monthly observation date.
If the notes are not called and each stock’s final share price is greater than or equal to its downside threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the lesser performing stock’s final share price 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 with memory interest
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Underlying stocks: | American Airlines Group Inc. and Alphabet Inc.
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Amount: | $3,393,000
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Maturity: | April 6, 2026
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Coupon: | 18.25% per year, payable monthly if each stock closes at or above downside threshold level on observation date for that month, plus any previously unpaid contingent coupons
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Price: | Par
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Payout at maturity: | If notes are not called and each stock’s final share price is greater than or equal to downside threshold level, par; otherwise, 1% loss for every 1% that lesser performing stock’s final share price is less than initial share price
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Call: | After six months, automatically at par if each stock closes at or above initial share price on any monthly observation date
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Initial share prices: | $14.75 for American Airlines and $104.00 for Alphabet
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Downside thresholds: | $7.38 for American Airlines and $52.00 for Alphabet, 50% of initial share price
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Pricing date: | March 31, 2023
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Settlement date: | April 5, 2023
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Agents: | UBS Securities LLC and UBS Investment Bank
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Fees: | 1.5%
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Cusip: | 90279GBC2
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