By William Gullotti
Buffalo, N.Y., Nov. 24 – UBS AG, London Branch priced $8.47 million of trigger autocallable contingent yield notes due Aug. 27, 2024 linked to an equally weighted basket of four stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the common stocks of American Airlines Group Inc., JetBlue Airways Corp., Spirit Airlines, Inc. and United Airlines Holdings, Inc.
The notes will pay a contingent monthly coupon at an annualized rate of 7.55% if the basket closes at or above its 70% coupon barrier on the related monthly observation date.
The notes will be called at par plus the coupon if the basket closes at or above the initial basket level on any monthly observation date after six months.
If the notes are not called, the payout at maturity will be par plus the final coupon if the basket finishes at or above the coupon barrier.
If the basket finishes below the coupon barrier but at or above 60% downside threshold, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% decline of the basket from initial level.
UBS Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying stocks: | American Airlines Group Inc., JetBlue Airways Corp., Spirit Airlines, Inc., United Airlines Holdings, Inc.; each with a 25% weight
|
| Amount: | $8,468,000
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| Maturity: | Aug. 27, 2024
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| Coupon: | 7.55% annualized, payable each quarter that basket closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon if final basket level is greater than or equal to its coupon barrier; if the basket finishes below coupon barrier but at or above downside threshold, par; otherwise, full exposure to losses
|
| Call: | Automatically at par plus coupon if basket closes at or above initial share price on any monthly observation date after six months
|
| Initial share price: | $19.63 for American, $22.56 for Spirit, $14.50 for JetBlue, $46.48 for United
|
| Coupon barrier: | 70% of initial level
|
| Downside threshold: | 60% of initial level
|
| Pricing date: | Nov. 22
|
| Settlement date: | Nov. 26
|
| Agents: | UBS Securities LLC and UBS Investment Bank
|
| Fees: | 3%
|
| Cusip: | 90279DPM2
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