Published on 8/13/2022 in the Prospect News Structured Products Daily.
New Issue: UBS prices $1.2 million trigger autocallable contingent yield notes with memory on ETFs
By Kiku Steinfeld
Chicago, Aug. 15 – UBS AG, London Branch priced $1.2 million of trigger autocallable contingent yield notes with memory interest due Jan. 17, 2025 linked to the least performing of the iShares Russell 2000 ETF, the Invesco QQQ Trust, Series 1 and the SPDR S&P 500 ETF trust, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 9% per year if each ETF closes at or above its coupon barrier, 80% of its initial level, on the related observation date. Contingent coupon payments will include any previously unpaid coupons.
The notes will be automatically called at par plus coupon if the shares of each ETF close at or above its initial share price on any quarterly call observation date after six months.
If the notes are not called and the final share price of each ETF is greater than or equal to its downside threshold level, 70% of the initial share price, the payout at maturity will be par plus any final coupon. Otherwise, investors will lose 1% for every 1% loss of the least performing ETF, payable in shares or cash at the option of the issuer.
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 with memory interest
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Underlying ETFs: | iShares Russell 2000 ETF, Invesco QQQ Trust, Series 1, SPDR S&P 500 ETF trust
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Amount: | $1.2 million
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Maturity: | Jan. 17, 2025
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Coupon: | 9% per year, paid quarterly plus any previously unpaid coupons, 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 any final coupon if each ETF finishes at or above downside threshold; otherwise, 1% loss for each 1% decline of laggard ETF from initial level, payable in shares or cash at option of the issuer
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Call: | Automatically at par plus coupon if each ETF closes at or above initial level on any quarterly call observation date after six months
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Initial levels: | $214.31 for Russell, $380.01 for QQQ, $464.72 for SPDR
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Coupon barrier levels: | $171.45 for Russell, $304.01 for QQQ, $371.78 for SPDR; 80% of initial levels
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Downside thresholds: | $150.02 for Russell, $266.01 for QQQ, $325.30 for SPDR; 70% of initial levels
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Equity ratios: | 4.6661 for Russell, 2.6315 for QQQ, 2.1518 for SPDR
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Pricing date: | Jan. 14
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Settlement date: | Jan. 20
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Agents: | UBS Securities LLC and UBS Investment Bank
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Fees: | 0.25%
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Cusip: | 90279DUR5
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