Published on 2/25/2021 in the Prospect News Structured Products Daily.
New Issue: UBS sells $15.4 million contingent yield trigger autocallables on stock basket
By Marisa Wong
Los Angeles, Feb. 25 – UBS AG, London Branch priced $15.4 million of trigger autocallable contingent yield notes due Feb. 27, 2023 linked to an equally weighted basket of 10 stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket stocks are Amgen Inc., Cisco Systems, Inc., Chevron Corp., Dow Inc., International Business Machines Corp., Coca-Cola Co., 3M Co., Pfizer Inc., Verizon Communications Inc., Exxon Mobil Corp.
The notes will pay a contingent quarterly coupon at an annualized rate of 8.6% if the basket closes at or above its coupon barrier level, 80% of its initial level, on the related quarterly observation date.
The notes will be called at par of $10 plus the coupon if the basket closes at or above its initial level on any quarterly observation date prior to the final valuation date.
The payout at maturity will be par unless the basket finishes below its 80% downside threshold level, in which case investors will lose 1% for each 1% decline of the basket from 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 autocallable contingent yield notes
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| Underlying basket: | Amgen Inc. (Symbol: AMGN), Cisco Systems, Inc. (Symbol: CSCO), Chevron Corp. (Symbol: CVX), Dow Inc. (Symbol: DOW), International Business Machines Corp. (Symbol: IBM), Coca-Cola Co. (Symbol: KO), 3M Co. (Symbol: MMM), Pfizer Inc. (Symbol: PFE), Verizon Communications Inc. (Symbol: VZ), Exxon Mobil Corp. (Symbol: XOM); each with 10% weight
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| Amount: | $15.4 million
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| Maturity: | Feb. 27, 2023
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| Coupon: | 8.6%, payable each quarter that basket closes at or above coupon barrier on observation date for that quarter
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| Price: | Par of $10
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| Call: | At par plus coupon if basket closes at or above initial level on any quarterly observation date prior to the final one
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| Payout at maturity: | Par unless basket finishes below downside threshold, in which case 1% loss for each 1% decline from initial level
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| Initial basket level: | 100
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| Coupon barrier: | 80, 80% of initial level
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| Downside threshold: | 80, 80% of initial level
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| Initial share prices: | $231.69 for Amgen, $45.68 for Cisco, $95.80 for Chevron, $60.39 for Dow, $118.99 for IBM, $50.11 for Coca-Cola, $176.54 for 3M, $34.44 for Pfizer, $56.45 for Verizon, $52.37 for Exxon
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| Pricing date: | Feb. 19
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| Settlement date: | Feb. 22
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 1.25%
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| Cusip: | 90278X509
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