Published on 6/15/2022 in the Prospect News Structured Products Daily.
New Issue: UBS prices $2.81 million trigger autocallable contingent yield notes on three stocks
By William Gullotti
Buffalo, N.Y., June 15 – UBS AG, London Branch priced $2.81 million of trigger autocallable contingent yield notes due June 13, 2025 linked to the stock performance of Advanced Micro Devices, Inc., Delta Air Lines, Inc. and Morgan Stanley, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at the rate of 27% per year if each stock closes at or above its coupon barrier, 60% of its initial level, on the corresponding observation date.
The notes will be automatically called at par plus coupon if the shares of each stock closes at or above its initial share price on any monthly call observation date after three months.
If the notes are not called and the final share price of each stock is greater than or equal to its downside threshold level, 60% of the initial share price, the payout at maturity will be par plus the final coupon.
Otherwise, investors will receive a number of shares of the worst performer equal to $1,000 divided by that stock’s initial level.
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
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| Underlying stocks: | Advanced Micro Devices, Inc., Delta Air Lines, Inc., Morgan Stanley
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| Amount: | $2,807,000
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| Maturity: | June 13, 2025
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| Coupon: | 27% per year, paid monthly, if each stock closes at or above its coupon barrier on the related observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon if each stock finishes at or above its downside threshold level; otherwise, receive a number of shares of the worst performer equal to its equity ratio
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| Call: | Automatically at par plus coupon if each stock closes at or above initial level on any monthly call observation date after three months
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| Initial levels: | $94.82 for AMD, $35.12 for Delta, $77.40 for Morgan Stanley
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| Coupon barrier levels: | $56.89 for AMD, $21.07 for Delta, $46.44 for Morgan Stanley; 60% of initial levels
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| Downside thresholds: | $56.89 for AMD, $21.07 for Delta, $46.44 for Morgan Stanley; 60% of initial levels
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| Equity ratio: | 10.5463 for AMD, 28.4738 for Delta, 12.9199 for Morgan Stanley; shares delivered per note
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| Pricing date: | June 10
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| Settlement date: | June 15
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 3.7%
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| Cusip: | 90279FGY1
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