Published on 5/6/2021 in the Prospect News Structured Products Daily.
New Issue: UBS prices $540,000 trigger callable contingent yield notes on three stocks
By William Gullotti
Buffalo, N.Y., May 6 – UBS AG, London Branch priced $540,000 of trigger callable contingent yield notes due April 22, 2025 linked to the least performing of the stocks of Qualcomm Inc., United Parcel Service, Inc. and Walmart Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 9.15% if each stock’s closing level is at least 60% of its initial level on the observation date for that period.
The notes will be callable at par on any quarterly observation date other than the final one.
If the notes are not called and each stock finishes at or above its 50% downside threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing stock’s final level is below its initial level.
UBS Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger callable contingent yield notes
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| Underlying stocks: | Qualcomm Inc., United Parcel Service, Inc., Walmart Inc.
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| Amount: | $540,000
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| Maturity: | April 22, 2025
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| Coupon: | 9.15% per year, payable quarterly if each stock closes at or above its coupon barrier level on the observation date for that period
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below its downside threshold level, in which case full exposure to the losses of the worst performing stock
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| Call option: | At par on any quarterly observation date other than the final date
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| Initial levels: | $138.21 for Qualcomm, $179.71 for UPS, $140.61 for Walmart
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| Coupon barrier levels: | $82.93 for Qualcomm, $107.83 for UPS, $84.37 for Walmart; 60% of initial levels
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| Downside threshold levels: | $69.11 for Qualcomm, $89.86 for UPS, $70.31 for Walmart; 50% of initial levels
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| Pricing date: | April 16
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| Settlement date: | April 21
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 0.8056%
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| Cusip: | 90276BXR9
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