Published on 1/18/2024 in the Prospect News Structured Products Daily.
New Issue: UBS prices $4.02 million trigger autocallable contingent yield notes on three ETFs
By William Gullotti
Buffalo, N.Y., Jan. 18 – UBS AG, London Branch priced $4.02 million of trigger autocallable contingent yield notes due Jan. 15, 2027 linked to the least performing of the SPDR S&P Biotech ETF the VanEck Gold Miners ETF and the iShares Semiconductor ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at the rate of 10% per year if each ETF closes at or above its coupon barrier, 70% of its initial level, on the related observation date.
The notes will be automatically called at par plus coupon if each ETF closes at or above its call level, 90% of initial level, on any monthly call observation date after three months.
If the notes are not called and the final level of each ETF is greater than or equal to its coupon barrier, the payout at maturity will be par plus the final coupon.
If the least performing ETF finishes below its coupon barrier but at or above its downside threshold, 60% of the initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final level of the least performing ETF is less than its initial level.
UBS Securities LLC and UBS Investment Bank are the agents.
Issuer: | UBS AG, London Branch
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Issue: | Trigger autocallable contingent yield notes
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Underlying ETFs: | VanEck Gold Miners ETF, iShares Semiconductor ETF, SPDR S&P Biotech ETF
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Amount: | $4.02 million
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Maturity: | Jan. 15, 2027
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Coupon: | 10% per year, paid monthly, if each ETF closes at or above its coupon barrier on any related observation date
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Price: | Par
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Payout at maturity: | Par plus final coupon if each ETF finishes at or above coupon barrier; if the worst performing ETF finishes below coupon barrier but at or above downside threshold level, par; otherwise, 1% loss for each 1% decline of worst performing ETF from initial level
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Call: | Automatically at par plus coupon if each ETF closes at or above call level on any monthly call observation date after three months
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Initial levels: | $90.42 for SPDR, $29.70 for VanEck, $557.39 for iShares
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Call levels: | $81.38 for SPDR, $26.73 for VanEck, $501.65 for iShares; 90% of initial levels
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Coupon barrier levels: | $63.29 for SPDR, $20.79 for VanEck, $390.17 for iShares; 70% of initial levels
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Downside thresholds: | $54.25 for SPDR, $17.82 for VanEck, $334.43 for iShares; 60% of initial levels
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Pricing date: | Jan. 12
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Settlement date: | Jan. 18
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Agents: | UBS Securities LLC and UBS Investment Bank
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Fees: | 3.25%
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Cusip: | 90279WZS6
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