Published on 2/14/2024 in the Prospect News Structured Products Daily.
New Issue: UBS sells $4.25 million trigger autocallable contingent yield notes on three stocks
By Wendy Van Sickle
Columbus, Ohio, Feb. 14 – UBS AG, London Branch priced $4.25 million of trigger autocallable contingent yield notes due Feb. 12, 2026 linked to the least performing of the stocks of Chevron Corp., Occidental Petroleum Corp. and Exxon Mobil Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at the rate of 12.1% per year if each stock closes at or above its coupon barrier, 70% of its initial level, on the related observation date.
The notes will be automatically called at par plus the coupon if the shares of each stock close at or above their initial share prices on any monthly call observation date after three 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, 60% of the initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price of the least performing stock is less than its initial share price.
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: | Chevron Corp., Occidental Petroleum Corp. and Exxon Mobil Corp.
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Amount: | $4,245,000
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Maturity: | Feb. 12, 2026
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Coupon: | 12.1% per year, paid monthly, 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 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 if each stock closes at or above initial level on any monthly call observation date starting after three months
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Initial levels: | $151.04 for Chevron, $57.47 for Occidental, $101.77 for Exxon Mobil
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Coupon barrier levels: | $105.73 for Chevron, $40.23 for Occidental, $71.24 for Exxon Mobil; 70% of initial levels
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Downside threshold levels: | $90.62 for Chevron, $34.48 for Occidental, $61.06 for Exxon Mobil; 60% of initial levels
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Pricing date: | Feb. 9
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Settlement date: | Feb. 14
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Agents: | UBS Securities LLC and UBS Investment Bank
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Fees: | 0.65%
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Cusip: | 90279WY40
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