Published on 1/3/2020 in the Prospect News Structured Products Daily.
New Issue: UBS sells $3.24 million of trigger callable contingent yield notes on indexes
By Sarah Lizee
Olympia, Wash., Jan. 3 – UBS AG, London Branch priced $3.24 million of trigger callable contingent yield notes due Dec. 30, 2024 linked to the worst performing of the Dow Jones industrial average, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each six months, the notes will pay a contingent coupon at an annual rate of 5.5% if each index’s closing level is at least 60% of its initial level on the observation date for that period.
The notes will be callable in whole but not in part on any semiannual observation date other than the final one at par of $10 plus any coupon.
If the notes are not called and each index finishes at or above its 60% trigger level, 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 notes with daily coupon observation
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index and S&P 500 index
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| Amount: | $3,235,000
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| Maturity: | Dec. 30, 2024
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| Coupon: | 5.5% per year, payable quarterly if each index closes at or above its barrier level on the observation date for that period
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| Price: | Par of $10
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| Payout at maturity: | Par unless any index finishes below trigger level, in which case full exposure to any losses of worst performing index
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| Call option: | At par plus any coupon on any semiannual observation other than final date
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| Initial levels: | 28,455.09 for Dow, 1,671.902 for Russell, 3,221.22 for S&P
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| Coupon barrier levels: | 17,073.05 for Dow, 1,003.141 for Russell, 1,932.73 for S&P; 60% of initial levels
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| Trigger levels: | 17,073.05 for Dow, 1,003.141 for Russell, 1,932.73 for S&P; 60% of initial levels
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| Pricing date: | Dec. 20
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| Settlement date: | Dec. 30
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| Agent: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2%
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| Cusip: | 90270KZ69
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