By Kiku Steinfeld
Chicago, July 16 – UBS AG, London Branch priced $2.8 million of contingent income autocallable securities due July 13, 2023 linked to the common stock of Kellogg Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 8.25% per year if the shares close at or above the coupon barrier, 75% of the initial share price, on the observation date for that quarter.
The notes will be automatically called at par of $10 if the shares close at or above the initial share price on any quarterly observation after six months except the final one.
The payout at maturity will be par unless the stock finishes below its 75% downside threshold level, in which case investors will receive a number of shares of Kellogg stock equal to $1,000 divided by the initial share price, payable in cash.
UBS Securities LLC is the underwriter. Morgan Stanley Wealth Management is the dealer.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Kellogg Co.
|
| Amount: | $2,761,000
|
| Maturity: | July 13, 2023
|
| Contingent coupon: | 8.25%, payable quarterly if stock closes at or above coupon barrier level on related quarterly observation date
|
| Price: | Par of $10
|
| Payout at maturity: | Par unless stock finishes below downside threshold, in which case a number of shares of Kellogg stock equal to $1,000 divided by the initial share price, payable in cash
|
| Call: | Automatically at par if stock closes at or above initial price on any quarterly observation date after six months except final one
|
| Initial price: | $67.19
|
| Coupon barrier: | $50.39, 75% of initial price
|
| Downside threshold: | $50.39, 75% of initial price
|
| Pricing date: | July 10
|
| Settlement date: | July 15
|
| Underwriter: | UBS Securities LLC
|
| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 2.5%
|
| Cusip: | 90281K544
|
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