Published on 6/24/2022 in the Prospect News Structured Products Daily.
New Issue: UBS prices $3 million trigger autocallable contingent yield notes on three stocks
By William Gullotti
Buffalo, N.Y., June 24 – UBS AG, London Branch priced $3 million of trigger autocallable contingent yield notes due June 26, 2025 linked to the least performing of the common stocks of PayPal Holdings, Inc., Target Corp. and Exxon Mobil Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at the rate of 26% per year if each stock closes at or above its coupon barrier, 60% of its initial level, on the corresponding observation date.
The notes will be automatically called at par plus coupon if the shares of each stock closes at or above its call level, 90% of initial share price, on any quarterly call observation date after one year.
If the notes are not called and the final share price of each stock is greater than or equal to the coupon barrier, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon barrier but not below its downside threshold level, 50% of the initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price of the least performing stock is less than its initial level.
UBS Securities LLC and UBS Investment Bank are the agents.
Issuer: | UBS AG, London Branch
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Issue: | Trigger autocallable contingent yield notes
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Underlying stocks: | PayPal Holdings, Inc., Target Corp., Exxon Mobil Corp.
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Amount: | $3 million
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Maturity: | June 26, 2025
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Coupon: | 26% per year, paid monthly, if each stock closes at or above its coupon barrier on the related observation date
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Price: | Par
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Payout at maturity: | If each stock finishes at or above its coupon barrier, par plus final coupon; if worst performer finishes below coupon barrier but at or above downside threshold level, par; otherwise, 1% loss for each 1% decline of laggard stock from initial level
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Call: | Automatically at par plus coupon if each stock closes at or above call level on any quarterly call observation date after one year
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Initial levels: | $72.37 for PayPal, $144.70 for Target, $91.48 for Exxon Mobil
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Call levels: | $65.13 for PayPal, $130.23 for Target, $82.33 for Exxon Mobil; 90% of initial levels
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Coupon barrier levels: | $43.42 for PayPal, $86.82 for Target, $54.89 for Exxon Mobil; 60% of initial levels
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Downside thresholds: | $36.19 for PayPal, $72.35 for Target, $45.74 for Exxon Mobil; 50% of initial levels
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Pricing date: | June 21
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Settlement date: | June 24
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Agents: | UBS Securities LLC and UBS Investment Bank
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Fees: | 0.25%
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Cusip: | 90279FJK8
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