Published on 4/7/2023 in the Prospect News Structured Products Daily.
New Issue: UBS prices $800,000 airbag yield notes tied to Russell, S&P, Dow
By Kiku Steinfeld
Chicago, April 10 – UBS AG, London Branch priced $800,000 of airbag yield notes due June 7, 2023 linked to the least performing of the Dow Jones industrial average, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
A coupon is payable based on the maximum coupon rate of 7.75% per year if the lesser performing index closes at or above its initial level on March 2, 2023. If the lesser performing index closes below its initial level on March 2, 2023, the notes will pay a coupon based on the minimum coupon rate of 4.5% per year. Interest is payable on March 7, 2023.
The payout at maturity will be par if the lesser performing index closes at or above its 70% downside threshold level on June 2, 2023.
Otherwise, investors will lose 1.4286% for every 1% decline that the final level of the least performing underlying asset is less than its initial level beyond the 30% buffer.
UBS Securities LLC and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
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| Issue: | Airbag yield notes
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| Underlying indexes: | Russell 2000 index, S&P 500 index, Dow Jones industrial average
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| Amount: | $800,000
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| Maturity: | June 7, 2023
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| Coupon: | Interest is payable at 7.75% per year maximum coupon rate if the lesser performing index closes at or above initial level on March 2, 2023; minimum coupon rate of 4.5% yearly is payable if lesser performing index closes below initial level on March 2, 2023
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| Price: | Par
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| Payout at maturity: | If final level of lesser performing index is greater than or equal to the downside threshold on June 2, 2023, par; otherwise, investors will lose 1.4286% for every 1% decline of the lesser performing index in excess of 30%
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| Initial levels: | 1,774.606 for Russell, 3,895.75 for S&P, 33,202.22 for Dow
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| Downside threshold levels: | 1,242.224 for Russell, 2,727.03 for S&P, 23,241.55 for Dow; 70% of initial levels
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| Pricing date: | Dec. 15
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| Settlement date: | Dec. 19
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| Underwriters: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 0.2%
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| Cusip: | 90279FJ77
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