Published on 4/27/2020 in the Prospect News Structured Products Daily.
New Issue: UBS sells $1 million trigger callable contingent yield notes on indexes
By Sarah Lizee
Olympia, Wash., April 27 – UBS AG, London Branch priced $1 million of trigger callable contingent yield notes due April 22, 2026 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 12% per year if each index’s closing level is at or above its coupon barrier level, 75% of its initial level, on the observation date for that period.
The notes will be callable at par plus any coupon on each observation date after three years.
If the notes are not called and each index finishes at or above its 75% 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: | Dow Jones industrial average, Russell 2000, S&P 500
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| Amount: | $1 million
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| Maturity: | April 22, 2026
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| Coupon: | 12% per year, payable each quarter that each index closes at or above its coupon barrier on observation date that period
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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 observation date after three years
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| Initial levels: | 24,242.49 for Dow, 1,229.098 for Russell, 2,874.56 for S&P
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| Coupon barriers: | 18,181.87 for Dow, 921.824 for Russell, 2,155.92 for S&P; 75% of initial levels
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| Downside thresholds: | 18,181.87 for Dow, 921.824 for Russell, 2,155.92 for S&P; 75% of initial levels
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| Pricing date: | April 17
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| Settlement date: | April 23
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | None
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| Cusip: | 90276BAY9
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