Published on 2/20/2020 in the Prospect News Structured Products Daily.
New Issue: UBS sells $1.5 million trigger callable contingent yield notes on stocks
By Sarah Lizee
Olympia, Wash., Feb. 20 – UBS AG London Branch priced $1.5 million of trigger callable contingent yield notes due Feb. 19, 2021 linked to the least performing of the Apple Inc., Amazon.com, Inc., Alphabet Inc. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at a rate of 12.5% per year if each stock closes at or above its coupon barrier, 70% of its initial level, on the observation date that quarter.
The notes are callable at par plus any coupon due on any quarterly coupon payment date.
If the notes are not called and each stock finishes at or above its downside threshold, 70% of its initial 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 Investment Bank and UBS Securities LLC are the agents.
| Issuer: | UBS AG London Branch
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| Issue: | Trigger callable contingent yield notes
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| Underlying stocks: | Apple Inc., Amazon.com, Inc., Alphabet Inc. and Microsoft Corp.
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| Amount: | $1.5 million
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| Maturity: | Feb. 19, 2021
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| Coupon: | 12.5% per year, payable quarterly if each stock closes at or above its coupon barrier on observation date that quarter
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold, par; otherwise, 1% loss for every 1% that least-performing stock’s final level is below initial level
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| Call option: | At par plus any coupon due on any quarterly coupon payment date
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| Initial levels: | $324.87 for Apple, $2,149.87 for Amazon, $1,513.39 for Alphabet, $183.71 for Microsoft
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| Coupon barriers: | $227.41 for Apple, $1,504.91 for Amazon, $1,059.37 for Alphabet, $128.60 for Microsoft, or 70% of initial levels
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| Downside thresholds: | $227.41 for Apple, $1,504.91 for Amazon, $1,059.37 for Alphabet, $128.60 for Microsoft, or 70% of initial levels
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| Pricing date: | Feb. 13
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| Settlement date: | Feb. 20
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| Agents: | UBS Investment Bank and UBS Securities LLC
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| Fees: | 1.23%
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| Cusip: | 90270K4H9
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