Published on 5/10/2021 in the Prospect News Structured Products Daily.
New Issue: UBS sells $14.88 million trigger autocallable contingent yield notes on ETFs
By Wendy Van Sickle
Columbus, Ohio, May 10 – UBS AG, London Branch priced $14.88 million of trigger autocallable contingent yield notes due May 9, 2024 linked to the iShares Russell 2000 ETF, the Invesco QQQ trust, series 1, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 6.2% if each ETF closes at or above its coupon barrier, 70% of its initial level, on the observation date for that period.
The notes will be redeemed at par plus the coupon if both ETFs close above their initial levels on any quarterly observation date after six months.
The payout at maturity will be par plus the coupon unless any ETF finishes below its 70% downside threshold, in which case investors will lose 1% for each 1% decline of the worst performing ETF from its initial level.
UBS Securities LLC and UBS Financial Services Inc. are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying ETFs: | iShares Russell 2000 ETF, Invesco QQQ trust, series 1
|
| Amount: | $14,878,320
|
| Maturity: | May 9, 2024
|
| Coupon: | 6.2%, payable quarterly if each ETF closes at or above coupon barrier on observation date
|
| Price: | Par of $10
|
| Call: | At par plus the coupon if both ETFs close above their initial levels on any quarterly observation date after six months
|
| Payout at maturity: | Par plus the coupon if both ETFs finish above 70% of initial level; otherwise, 1% loss for each 1% decline of the worst performing ETF from initial level
|
| Initial levels: | $222.40 for Russell, $329.03 for QQQ
|
| Coupon barriers: | $155.68 for Russell, $230.32 for QQQ, 70% of initial levels
|
| Downside thresholds: | $155.68 for Russell, $230.32 for QQQ, 70% of initial levels
|
| Pricing date: | May 5
|
| Settlement date: | May 10
|
| Agents: | UBS Securities LLC and UBS Financial Services Inc.
|
| Fees: | 2%
|
| Cusip: | 90278Y457
|
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