Published on 7/6/2018 in the Prospect News Structured Products Daily.
New Issue: UBS sells $9.44 million trigger callable contingent yield notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, July 6 – UBS AG, London Branch priced $9.44 million of trigger callable contingent yield notes due Dec. 29, 2020 linked to the least performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon if each index closes at or above its coupon barrier, 75% of its initial level, on each day that quarter. The contingent coupon rate is 9.65% per year.
The notes are callable at par of $10 on each coupon payment date other than the final one.
If the notes are not called and each index finishes at or above its downside threshold, 75% of its initial 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: | Euro Stoxx 50, Russell 2000 and S&P 500
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Amount: | $9,443,000
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Maturity: | Dec. 29, 2020
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Coupon: | 9.65% per year, payable each quarter that each index closes at or above its coupon barrier on each day that quarter
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Price: | Par of $10
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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 on each quarterly coupon payment date other than final one
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Initial levels: | 1,685.577 for Russell, 2,754.88 for S&P, 3,441.6 for Stoxx
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Coupon barriers: | 1,264.183 for Russell, 2,066.16 for S&P, 2,581.2 for Stoxx; 75% of initial levels
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Downside thresholds: | 1,264.183 for Russell, 2,066.16 for S&P, 2,581.2 for Stoxx; 75% of initial levels
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Pricing date: | June 22
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Settlement date: | June 27
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Agents: | UBS Financial Services Inc. and UBS Investment Bank
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Fees: | 2.25%
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Cusip: | 90270KSK6
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