Published on 2/25/2020 in the Prospect News Structured Products Daily.
New Issue: UBS sells $1.74 million of trigger callable contingent yield notes on ETFs
By Sarah Lizee
Olympia, Wash., Feb. 25 – UBS AG, London Branch priced $1.74 million of trigger callable contingent yield notes due Aug. 23, 2023 linked to the worst performing of the SPDR Dow Jones industrial average ETF Trust, the iShares Russell 2000 ETF and the Invesco QQQ Trust, series 1, 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 8.5% if each ETF’s closing level is at least 75% of its initial level on the observation date for that period.
The notes will be callable in whole but not in part on any observation date other than the final one at par of $10 plus any coupon.
If the notes are not called and each ETF finishes at or above its 75% trigger level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing ETF’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 ETFs: | SPDR Dow Jones industrial average ETF Trust, iShares Russell 2000 ETF and Invesco QQQ Trust, series 1
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| Amount: | $1,739,000
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| Maturity: | Aug. 23, 2023
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| Coupon: | 8.5% per year, payable quarterly if each ETF closes at or above its barrier level on the observation date for that period
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| Price: | Par of $10
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| Payout at maturity: | Par unless any ETF finishes below trigger level, in which case full exposure to any losses of worst performing ETF
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| Call option: | At par plus any coupon on any observation other than final date
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| Initial levels: | $292.95 for Dow ETF, $167.54 for Russell ETF, $234.73 for QQQ ETF
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| Coupon barrier levels: | $219.71 for Dow ETF, $125.66 for Russell ETF, $176.05 for QQQ ETF; 75% of initial levels
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| Trigger levels: | $219.71 for Dow ETF, $125.66 for Russell ETF, $176.05 for QQQ ETF; 75% of initial levels
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| Pricing date: | Feb. 18
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| Settlement date: | Feb. 21
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| Agent: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 1.75%
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| Cusip: | 90270K4F3
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