Chicago, Jan. 31 – UBS AG, London Branch priced $3.6 million of trigger autocallable contingent yield notes due Jan. 8, 2027 linked to the performance of the nearby month Brent Crude Oil Futures Contract, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at the rate of 13.5% per year if the commodity closes at or above its coupon barrier, 65% of its initial level, on the related observation date.
The notes will be automatically called at par plus coupon if the shares of the commodity close at or above the initial level on any quarterly call observation date after six months.
If the notes are not called and the final level is greater than or equal to the downside threshold level, 65% of the initial level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1% for every 1% that the commodity declines from its initial level.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying commodity: | Brent Crude Oil Futures Contract
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| Amount: | $3,600,000
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| Maturity: | Jan. 8, 2027
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| Coupon: | 13.5% per year, paid quarterly, if the commodity closes at or above its coupon barrier on the related observation date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus the final coupon unless the commodity finishes below downside threshold level, in which case investors will be fully exposed to the commodity’s decline from its initial level
|
| Call: | Automatically at par plus coupon if the commodity closes at or above initial level on any quarterly call observation date after six months
|
| Initial level: | $78.76
|
| Coupon barrier level: | $51.19; 65% of initial level
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| Downside threshold: | $51.19; 65% of initial level
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| Strike date: | Jan. 5
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| Pricing date: | Jan. 8
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| Settlement date: | Jan. 10
|
| Agents: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 2%
|
| Cusip: | 90301Q661
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