Published on 3/13/2020 in the Prospect News Structured Products Daily.
New Issue: UBS sells $11 million trigger callable contingent yield notes on indexes
By Sarah Lizee
Olympia, Wash., March 13 – UBS AG, London Branch priced $11 million trigger callable contingent yield notes due March 13, 2025 linked to the least performing of the Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 11% per year if each index’s closing level is at or above its coupon barrier level, 70% of its initial level, on the observation date that quarter.
After six months, the notes will be callable at par plus any coupon on each quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its 60% downside threshold, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below 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 callable contingent yield securities
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| Underlying indexes: | Nasdaq-100, Russell 2000, Dow Jones industrial average
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| Amount: | $11 million
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| Maturity: | March 13, 2025
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| Coupon: | 11% per year, payable each quarter that each index 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 index finishes at or above downside threshold, par; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
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| Call option: | At par plus any coupon on any quarterly observation date after six months
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| Initial levels: | 25,018.16 for Dow, 8,372.266 for Nasdaq, 1,350.898 for Russell
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| Coupon barriers: | 17,512.71 for Dow, 5,860.586 for Nasdaq, 945.629 for Russell; 70% of initial levels
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| Downside thresholds: | 15,010.90 for Dow, 5,023.360 for Nasdaq, 810.539 for Russell; 60% of initial levels
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| Pricing date: | March 10
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| Settlement date: | March 16
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 3.35%
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| Cusip: | 90270K5X3
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