By Wendy Van Sickle
Columbus, Ohio, Feb. 3 – UBS AG, London Branch priced $14 million of trigger callable contingent yield notes due Jan. 28, 2027 linked to the worst performing of the iShares MSCI EAFE ETF, the iShares Russell 2000 ETF and the SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.5% if each ETF’s closing level is at least 70% of its initial level on the relevant observation date.
The notes will be callable at par plus any coupon due on any quarterly observation date.
If the notes are not called and each ETF finishes at or above its 70% coupon barrier, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon barrier but at or above its 65% trigger level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the worst performer’s final level is below its initial level.
UBS Russell Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger callable contingent yield notes
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| Underlying funds: | iShares MSCI EAFE ETF, iShares Russell 2000 ETF, SPDR S&P 500 ETF Trust
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| Amount: | $14 million
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| Maturity: | Jan. 28, 2027
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| Coupon: | 8.5% per year, payable quarterly if each ETF closes at or above its coupon barrier level on the corresponding observation date
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| Price: | Par of $10
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| Payout at maturity: | Par plus final coupon if each ETF finishes at or above coupon barrier; if worst performer finishes below coupon barrier but at or above trigger level, par; otherwise, full exposure to the decline of the worst performing ETF from its initial level
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| Call option: | At par plus any coupon due on any quarterly observation date
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| Initial levels: | $75.58 for EAFE, $201.53 for Russell, $439.84 for S&P
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| Coupon barrier levels: | $52.91 for EAFE, $141.07 for Russell, $307.89 for S&P; 70% of initial levels
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| Trigger levels: | $49.13 for EAFE, $130.99 for Russell, $285.90 for S&P; 65% of initial levels
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| Pricing date: | Jan. 24
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| Settlement date: | Jan. 27
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| Agents: | UBS Russell Services Inc. and UBS Investment Bank
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| Fees: | 2%
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| Cusip: | 90285D876
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