Published on 8/26/2022 in the Prospect News Structured Products Daily.
New Issue: UBS prices $4 million trigger callable contingent yield notes on three indexes
By William Gullotti
Buffalo, N.Y., Aug. 26 – UBS AG, London Branch priced $4 million of trigger callable contingent yield notes with daily coupon observation due Feb. 27, 2026 linked to the performance of the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 13.4% if each index’s closing level is at least 70% of its initial level on every trading day during the observation period.
The notes will be callable at par on any quarterly observation date.
If the notes are not called and each index finishes at or above its coupon barrier, the payout at maturity will be par plus any final coupon otherwise due.
If the worst performer finishes below its coupon barrier but at or above its 60% trigger level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
Issuer: | UBS AG, London Branch
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Issue: | Trigger callable contingent yield notes with daily coupon observation
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Underlying indexes: | Nasdaq-100 index, Russell 2000 index, S&P 500 index
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Amount: | $4 million
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Maturity: | Feb. 27, 2026
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Coupon: | 13.4% per year, payable quarterly if each index closes at or above its coupon barrier on every trading day during the observation period
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Price: | Par of $10
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Payout at maturity: | Par plus any final coupon otherwise due if each index finishes at or above its coupon barrier level; if the worst performer finishes below its coupon barrier but at or above its trigger level, the payout will be par; otherwise, investors will be fully exposed to the losses of the worst performing index
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Call option: | At par on any quarterly observation date
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Initial levels: | 12,917.86 for Nasdaq, 1,935.286 for Russell, 4,140.77 for S&P
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Coupon barrier levels: | 9,042.5 for Nasdaq, 1,354.7 for Russell, 2,898.54 for S&P; 70% of initial levels
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Trigger levels: | 7,750.72 for Nasdaq, 1,161.172 for Russell, 2,484.46 for S&P; 60% of initial levels
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Pricing date: | Aug. 24
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Settlement date: | Aug. 29
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Agents: | UBS Financial Services Inc. and UBS Investment Bank
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Fees: | 1%
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Cusip: | 90289U817
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