Published on 4/5/2024 in the Prospect News Structured Products Daily.
New Issue: UBS sells $25.09 million contingent income autocallable securities on SPDR funds
By Wendy Van Sickle
Columbus, Ohio, April 5 – UBS AG, London Branch priced $25.09 million of contingent income autocallable securities due April 2, 2026 linked to the performance of the Energy Select Sector SPDR fund, the Financial Select Sector SPDR fund and the Utilities Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 10% if each fund closes at or above its 70% coupon barrier on the corresponding observation date.
The notes will be called at par of plus the contingent coupon if all funds close at or above their respective initial level on any quarterly determination date.
If the notes are not called and each fund finishes at or above its downside threshold level, 70% of initial level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level.
UBS Securities LLC is the agent and Morgan Stanley Wealth Management is the dealer.
Issuer: | UBS AG, London Branch
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Issue: | Contingent income autocallable securities
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Underlying funds: | Energy Select Sector SPDR fund, Financial Select Sector SPDR fund, Utilities Select Sector SPDR fund
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Amount: | $25,093,000
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Maturity: | April 2, 2026
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Coupon: | 10% per year, payable quarterly if all funds close at or above coupon barrier level on the relevant observation date
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Price: | Par
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Payout at maturity: | Par plus final coupon if each fund finishes at or above downside threshold; otherwise, investors will be exposed to the worst performer’s decline from its initial level
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Call: | At par plus contingent coupon if all funds close at or above initial level on any quarterly determination date
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Initial levels: | $94.41 for Energy, $42.12 for Financial, $65.65 for Utilities
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Coupon barriers: | $66.09 for Energy, $29.48 for Financial, $45.96 for Utilities; 70% of initial levels
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Downside thresholds: | $66.09 for Energy, $29.48 for Financial, $45.96 for Utilities; 70% of initial levels
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Pricing date: | March 28
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Settlement date: | April 3
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Agent: | UBS Securities LLC
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Dealer: | Morgan Stanley Wealth Management
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Fees: | 2%
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Cusip: | 9026745R7
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