Published on 1/25/2022 in the Prospect News Structured Products Daily.
New Issue: UBS prices $2.04 million trigger autocallable contingent yield notes on three tech stocks
By William Gullotti
Buffalo, N.Y., Jan. 25 – UBS AG, London Branch priced $2.04 million of trigger autocallable contingent yield notes due Jan. 14, 2027 linked to the least performing of the stocks of Meta Platforms, Inc., Alphabet Inc. and Cloudflare, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at the rate of 22% per year if each stock closes at or above its coupon barrier, 60% of its initial level, on the corresponding observation date.
The notes will be automatically called at par plus coupon if the shares of each stock closes at or above its initial share price on any monthly call observation date after three months.
If the notes are not called and the final share price of each stock is greater than or equal to the 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 the downside threshold level, 50% of the initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price of the least performing stock 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 stocks: | Meta Platforms, Inc., Alphabet Inc., Cloudflare, Inc.
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Amount: | $2,035,000
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Maturity: | Jan. 14, 2027
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Coupon: | 22% per year, paid monthly, if each stock closes at or above its coupon barrier on the related observation date
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Price: | Par
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Payout at maturity: | Par plus final coupon if each stock finishes at or above its coupon barrier; if the worst performer finishes below coupon barrier but not below downside threshold, par; otherwise, 1% loss for each 1% decline of laggard stock from initial level
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Call: | Automatically at par plus coupon if each stock closes at or above initial level on any monthly call observation date after three months
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Initial levels: | $328.07 for Meta, $2,773.39 for Alphabet, $110.75 for Cloudflare
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Coupon barrier levels: | $196.84 for Meta, $1,664.03 for Alphabet, $66.45 for Cloudflare; 60% of initial levels
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Downside thresholds: | $164.04 for Meta, $1,386.70 for Alphabet, $55.38 for Cloudflare; 50% of initial levels
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Pricing date: | Jan. 10
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Settlement date: | Jan. 13
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Agents: | UBS Securities LLC and UBS Investment Bank
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Fees: | 1%
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Cusip: | 90279DUD6
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