Published on 6/28/2023 in the Prospect News Structured Products Daily.
New Issue: UBS prices $1.2 million trigger callable contingent yield notes on Dow, S&P
By William Gullotti
Buffalo, N.Y., June 28 – UBS AG, London Branch priced $1.2 million of trigger callable contingent yield notes due June 26, 2026 linked to the performance of the Dow Jones industrial average and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at an annual rate of 7.75% if each index’s closing level is at least 60% of its initial level on the corresponding observation date.
The notes will be callable at par on any monthly observation date after six months.
If the notes are not called and each index finishes at or above its 60% trigger level, the payout at maturity will be par plus the final coupon. 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 notes
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Underlying indexes: | Dow Jones industrial average, S&P 500 index
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Amount: | $1.2 million
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Maturity: | June 26, 2026
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Coupon: | 7.75% per year, payable monthly if each index closes at or above its coupon barrier on the relevant observation date
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Price: | Par
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Payout at maturity: | Par plus the final coupon unless any index finishes below its trigger level, in which case full exposure to the losses of the worst performing index
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Call option: | At par on any monthly observation date after six months
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Initial levels: | 33,727.43 for Dow, 4,348.33 for S&P
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Coupon barrier levels: | 20,236.46 for Dow, 2,609.0 for S&P; 60% of initial levels
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Trigger levels: | 20,236.46 for Dow, 2,609.0 for S&P; 60% of initial levels
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Pricing date: | June 23
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Settlement date: | June 28
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Agents: | UBS Financial Services Inc. and UBS Investment Bank
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Fees: | 0.7%
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Cusip: | 90279GQN2
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