Published on 10/10/2023 in the Prospect News Structured Products Daily.
New Issue: UBS prices $1 million trigger callable contingent yield notes on Dow, S&P
By William Gullotti
Buffalo, N.Y., Oct. 10 – UBS AG, London Branch priced $1 million of trigger callable contingent yield notes due Oct. 7, 2026 linked to the performance of the Dow Jones industrial average 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 8.3% if each index’s closing level is at least 70% of its initial level on the corresponding observation date.
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 70% coupon barrier, the payout at maturity will be par plus the final coupon.
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 worst performer’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
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Underlying indexes: | Dow Jones industrial average, S&P 500 index
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Amount: | $1 million
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Maturity: | Oct. 7, 2026
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Coupon: | 8.3% per year, payable quarterly if each index closes at or above its coupon barrier on the relevant observation date
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Price: | Par
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Payout at maturity: | Par plus the final coupon if each index finishes at or above coupon barrier level; if worst performer finishes below coupon barrier but at or above trigger level, par; otherwise, full exposure to the decline of the worst performing index from initial level
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Call option: | At par on any quarterly observation date
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Initial levels: | 33,433.35 for Dow, 4,288.39 for S&P
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Coupon barrier levels: | 23,403.35 for Dow, 3,001.87 for S&P; 70% of initial levels
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Trigger levels: | 20,060.01 for Dow, 2,573.03 for S&P; 60% of initial levels
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Strike date: | April 13
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Pricing date: | Oct. 2
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Settlement date: | Oct. 5
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Agents: | UBS Financial Services Inc. and UBS Investment Bank
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Fees: | 0.75%
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Cusip: | 90279WGZ1
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