Published on 12/3/2020 in the Prospect News Structured Products Daily.
New Issue: UBS sells $9.64 million contingent income autocalls on two stocks
By Wendy Van Sickle
Columbus, Ohio, Dec. 3 – UBS AG, London Branch priced $9.64 million of contingent income autocallable securities due Dec. 5, 2023 linked to the worst performing of the stocks of Amazon.com, Inc. and Alibaba Group Holding Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 7.15% if each stock closes at or above its coupon barrier, 50% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon if each stock closes above its initial level on any quarterly redemption date after six months.
The payout at maturity will be par unless any stock finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC is the distributor.
Issuer: | UBS AG, London Branch
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Issue: | Contingent income autocallable securities
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Underlying stocks: | Amazon.com, Inc. and Alibaba Group Holding Ltd.
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Amount: | $9,644,000
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Maturity: | Dec. 5, 2023
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Coupon: | 7.15% per year, payable each quarter if each stock closes at or above coupon barrier on determination date for that period
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Price: | Par of $10
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Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par; otherwise, full exposure to decline of worst performer
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Call: | Par plus the contingent coupon if each stock closes above its initial level on any quarterly redemption date after six months
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Initial share prices: | $3,168.04 for Amazon, $263.36 for Alibaba
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Coupon barriers: | $1,584.02 for Amazon, $131.68 for Alibaba; 50% of initial share prices
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Downside thresholds: | $1,584.02 for Amazon, $131.68 for Alibaba; 50% of initial share prices
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Pricing date: | Nov. 30
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Settlement date: | Dec. 3
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Agent: | UBS Securities LLC
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Distributor: | Morgan Stanley Smith Barney LLC
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Fees: | 2.5%Cusip: | 90278R460
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