Published on 8/3/2023 in the Prospect News Structured Products Daily.
New Issue: UBS sells $10.69 million step down trigger autocallable notes on ETF, Dow
By Wendy Van Sickle
Columbus, Ohio, Aug. 3 – UBS AG, London Branch priced $10.69 million of step down trigger autocallable notes due Aug. 5, 2026 linked to the least performing of the Dow Jones industrial average and the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an 15% annualized call premium if each asset closes each asset closes at or above their call levels on any quarterly observation date after six months. Call level starts at 100% of initial level and steps down by 5% per year, starting Nov. 5, 2024.
The notes will be called at par plus the 45% final premium of each asset closes at or above 90% of initial level on the final call date.
If the notes are not called and each asset finishes at or above its 80% downside threshold, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
UBS Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Step down trigger autocallable notes
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| Underlying assets: | Dow Jones industrial average, Energy Select Sector SPDR fund
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| Amount: | $10,693,000
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| Maturity: | Aug. 5, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par unless either asset finishes below downside threshold level, in which case 1% loss for each 1% decline of worse performing asset from initial level
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| Call: | At par plus 15% annualized call premium if both assets close above call level on any quarterly observation date after six months; call level starts at 100% of initial level and steps down by 5% per year, starting Nov. 5, 2024
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| Initial levels: | 35,559.53 for Dow, $87.48 for ETF
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| Downside thresholds: | 28,447.62 for Dow, $69.98 for ETF; 80% of initial levels
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| Pricing date: | July 31
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| Settlement date: | Aug. 3
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 2%
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| Cusip: | 90279GA82
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