Published on 9/25/2023 in the Prospect News Structured Products Daily.
New Issue: UBS sells $509,000 trigger autocallable contingent yield notes on Microsoft, PayPal
Chicago, Sept. 25 – UBS AG, London Branch priced $509,000 of trigger autocallable contingent yield notes due Sept. 19, 2025 linked to the least performing of the common stocks of Microsoft Corp. and PayPal Holdings, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 17% per year if each stock closes at or above its coupon barrier, 70% of its initial level, on the corresponding observation date.
The notes will be automatically called at par plus coupon if the shares of each stock closes at or above 80% of its initial share price on any quarterly call observation date after six months.
If the notes are not called and the final share price of each stock is greater than or equal to the downside threshold level, 70% of the initial share price, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for every 1% that the final share price of the least performing stock is less than its initial level.
UBS Securities LLC and UBS Investment Bank are the agents.
Issuer: | UBS AG, London Branch
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Issue: | Trigger autocallable contingent yield notes
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Underlying stocks: | Microsoft Corp. and PayPal Holdings, Inc.
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Amount: | $509,000
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Maturity: | Sept. 19, 2025
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Coupon: | 17% per year, paid quarterly, if each stock closes at or above its coupon barrier on the related observation date
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Price: | Par
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Payout at maturity: | Par plus final coupon unless any stock finishes below downside threshold level, in which case 1% loss for each 1% decline of laggard stock from initial level
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Call: | Automatically at par plus coupon if each stock closes at or above 80% of its initial level on any quarterly call observation date after six months
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Initial levels: | $244.74 for Microsoft, $94.00 for PayPal
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Call thresholds: | $195.79 for Microsoft, $75.20 for PayPal; 80% of initial levels
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Coupon barrier levels: | $171.32 for Microsoft, $65.80 for PayPal; 70% of initial levels
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Downside thresholds: | $171.32 for Microsoft, $65.80 for PayPal; 70% of initial levels
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Pricing date: | Sept. 16, 2022
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Settlement date: | Sept. 21, 2022
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Agents: | UBS Securities LLC and UBS Investment Bank
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Fees: | 2.75%
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Cusip: | 90279FUE9
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