By William Gullotti
Buffalo, N.Y., Jan. 11 – UBS AG, London Branch priced $1.3 million of airbag callable contingent yield notes due Jan. 10, 2029 linked to the least performing of the iShares Russell 2000 ETF, the SPDR S&P 500 ETF Trust and the Utilities Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly at an annualized rate of 10.1% if the least-performing ETF closes at or above its coupon barrier, 75% of the initial level, on the related observation date.
The notes will be callable at par plus any coupon otherwise due on any monthly observation date after nine months.
The payout at maturity will be par plus the final coupon if each ETF finishes at or above its coupon barrier.
If the least-performing ETF finishes below its coupon barrier but at or above the downside threshold, 70% of initial level, the payout will be par. Otherwise, investors will lose 1.4286% for each 1% decline of the least-performing ETF beyond the downside threshold.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Airbag callable contingent yield notes
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| Underlying ETFs: | iShares Russell 2000 ETF, SPDR S&P 500 ETF Trust, Utilities Select Sector SPDR Fund
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| Amount: | $1.3 million
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| Maturity: | Jan. 10, 2029
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| Coupon: | 10.1%, payable monthly if least-performing ETF closes at or above coupon barrier on related observation date
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| Price: | Par
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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 downside threshold, par; otherwise, 1.4286% loss for each 1% loss of least-performing ETF beyond downside threshold
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| Call option: | At par plus any coupon otherwise due on any monthly observation date after nine months
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| Initial levels: | $193.25 for iShares, $467.92 for SPDR S&P, $64.53 for Utilities
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| Coupon barriers: | $144.94 for iShares, $350.94 for SPDR S&P, $48.40 for Utilities; 75% of initial levels
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| Downside thresholds: | $135.28 for iShares, $327.54 for SPDR S&P, $45.17 for Utilities; 70% of initial levels
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| Pricing date: | Jan. 5
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| Settlement date: | Jan. 10
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 0.1%
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| Cusip: | 90279WXC3
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