Published on 5/17/2022 in the Prospect News Structured Products Daily.
New Issue: UBS prices $1.26 million trigger callable contingent yield notes on three stocks
By William Gullotti
Buffalo, N.Y., May 17 – UBS AG, London Branch priced $1.26 million of trigger callable contingent yield notes due May 18, 2027 linked to the worst performing of the stocks of Lumen Technologies, Inc., AT&T Inc. and the Verizon Communications Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 16.6% if each stock’s closing level is at least 70% of its initial level on the observation date.
The notes will be callable at par on any quarterly observation date other than the final one.
If the notes are not called and each stock finishes at or above its 60% trigger level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing stock’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 stocks: | Lumen Technologies, Inc., AT&T Inc., Verizon Communications Inc.
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| Amount: | $1,256,000
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| Maturity: | May 18, 2027
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| Coupon: | 16.6% per year, payable quarterly if each stock closes at or above its coupon barrier level on the observation date
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below its trigger level, in which case full exposure to the losses of the worst performing stock
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| Call option: | At par on any quarterly observation date other than the final date
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| Initial levels: | $11.59 for Lumen, $19.84 for AT&T, $48.18 for Verizon
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| Coupon barrier levels: | $8.11 for Lumen, $13.89 for AT&T, $33.73 for Verizon; 70% of initial levels
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| Trigger levels: | $6.95 for Lumen, $11.90 for AT&T, $28.91 for Verizon; 60% of initial levels
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| Pricing date: | May 13
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| Settlement date: | May 18
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 3.65%
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| Cusip: | 90279FCE9
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