Published on 12/27/2020 in the Prospect News Structured Products Daily.
New Issue: UBS sells $5 million trigger autocallable contingent yield notes on basket of stocks
By Taylor Fox
New York, Dec. 30 – UBS AG, London Branch priced $5 million of trigger autocallable contingent yield notes due Dec. 22, 2022 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The 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. and Exxon Mobil Corp., each with a 10% weight.
The notes will pay a contingent quarterly coupon at an annual rate of 8.5% 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 after six months.
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 stocks: | Amgen Inc., Cisco Systems, Inc., Chevron Corp., Dow Inc., International Business Machines Corp., Coca-Cola Co., 3M Co., Pfizer Inc., Verizon Communications Inc. and Exxon Mobil Corp., each with a 10% weight
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Amount: | $5 million
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Maturity: | Dec. 22, 2022
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Coupon: | 8.5%, 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 after six months
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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 levels: | $231.24 for Amgen, $44.82 for Cisco, $88.41 for Chevron, $53.83 for Dow, $125.55 for IBM, $53.27 for Coca-Cola, $176.65 for 3M, $38.03 for Pfizer, $60.01 for Verizon and $43.48 for Exxon
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Downside threshold/coupon barrier: | 80% of initial basket level
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Pricing date: | Dec. 18
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Settlement date: | Dec. 22
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Agents: | UBS Financial Services Inc. and UBS Investment Bank
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Fees: | 1%
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Cusip: | 90278R627
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