Published on 1/18/2022 in the Prospect News Structured Products Daily.
New Issue: UBS sells $3.67 million trigger autocallable contingent yield notes with memory on indexes
By William Gullotti
Buffalo, N.Y., Jan. 18 – UBS AG, London Branch priced $3.67 million of trigger autocallable contingent yield notes with memory interest due Jan. 19, 2027 linked to the performance of the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at the rate of 6.3% per year if each index closes at or above its coupon barrier, 70% of its initial level, on any related observation date. Previously unpaid coupons, if any, will be automatically included whenever a coupon payment is made.
The notes will be automatically called at par plus coupon if each index closes at or above its initial level on any quarterly call observation date after one year.
If the notes are not called and the final level of each index is greater than or equal to the coupon barrier level, the payout at maturity will be par plus the final coupon and any previously unpaid coupons.
If the worst performer finishes below its coupon barrier but at or above the downside threshold level, 60% of the initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the worst performer declines from 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 with memory interest
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index, S&P 500 index
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| Amount: | $3,665,000
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| Maturity: | Jan. 19, 2027
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| Coupon: | 6.3% per year, paid quarterly, if each index closes at or above its coupon barrier on any related observation date; coupon payments will automatically include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above coupon barrier level, par plus final coupon and any previously unpaid coupons; if the worst performer finishes below coupon barrier but at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performer from initial level
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| Call: | Automatically at par plus coupon if each index closes at or above initial level on any quarterly call observation date after one year
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| Initial levels: | 15,495.62 for Nasdaq, 2,159.437 for Russell, 4,659.03 for S&P
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| Coupon barrier levels: | 10,846.93 for Nasdaq, 1,511.606 for Russell, 3,261.32 for S&P; 70% of initial levels
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| Downside thresholds: | 9,297.37 for Nasdaq, 1,295.662 for Russell, 2,795.42 for S&P; 60% of initial levels
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| Pricing date: | Jan. 13
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| Settlement date: | Jan. 19
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 0.25%
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| Cusip: | 90279DTY2
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