Published on 11/4/2021 in the Prospect News Structured Products Daily.
New Issue: UBS prices $3.64 million trigger callable contingent yield notes on three SPDR ETFs
By William Gullotti
Buffalo, N.Y., Nov. 4 – UBS AG, London Branch priced $3.64 million of trigger callable contingent yield notes due Nov. 3, 2025 linked to the worst performing of the Energy Select Sector SPDR Fund, the Financial Select Sector SPDR Fund and the Industrial Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 10.15% if each ETF’s closing level is at least 70% of its initial level on the relevant observation date.
The notes will be callable at par plus any coupon due on any monthly observation date after six months.
If the notes are not called and each ETF finishes at or above its 70% coupon barrier, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon barrier but at or above its 60% trigger level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the worst performer’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 funds: | Energy Select Sector SPDR Fund, Financial Select Sector SPDR Fund, Industrial Select Sector SPDR Fund
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Amount: | $3,644,000
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Maturity: | Nov. 3, 2025
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Coupon: | 10.15% per year, payable monthly if each ETF closes at or above its coupon barrier level on the corresponding observation date
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Price: | Par
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Payout at maturity: | Par plus final coupon if each ETF finishes at or above coupon barrier; if worst performer finishes below coupon barrier but at or above level, par; otherwise, full exposure to the decline of the worst performing ETF from its initial level
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Call option: | At par plus any coupon due on any monthly observation date after six months
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Initial levels: | $57.47 for Energy, $40.26 for Financial, $104.49 for Industrial
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Coupon barrier levels: | $40.23 for Energy, $28.18 for Financial, $73.14 for Industrial; 70% of initial levels
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Trigger levels: | $34.48 for Energy, $24.16 for Financial, $62.69 for Industrial; 60% of initial levels
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Pricing date: | Oct. 29
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Settlement date: | Nov. 3
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Agents: | UBS Financial Services Inc. and UBS Investment Bank
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Fees: | 0.25%
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Cusip: | 90279DMV5
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