Published on 1/22/2021 in the Prospect News Structured Products Daily.
New Issue: UBS sells $2.4 million trigger autocallable contingent yield notes on stocks
By Kiku Steinfeld
Chicago, Jan. 22 – UBS AG, London Branch priced $2.4 million of trigger autocallable contingent yield notes due Jan. 19, 2023 linked to the least performing of the common stocks of salesforce.com, inc. and Qualcomm Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 10.75% per year if the least-performing stock closes at or above its coupon barrier, 60% of its initial share price, on the observation date.
The notes will be automatically called at par if the least-performing stock closes at or above its initial share price on any quarterly call observation date.
If the notes are not called and the final share price of the least-performing stock is greater than or equal to that stock’s downside threshold level, 60% of its initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing stock’s final share price is less than its initial share price.
UBS Financial Services Inc. 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: | salesforce.com, inc. and Qualcomm Inc.
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| Amount: | $2,400,000
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| Maturity: | Jan. 19, 2023
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| Contingent coupon: | 10.75%, payable quarterly if least-performing stock closes at or above coupon barrier level on related observation date
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| Price: | Par
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| Payout at maturity: | Par unless least-performing stock finishes below downside threshold level, in which case investors will receive a number of shares of least performing stock equal to $1,000 divided by initial share price or, at issuer’s option, cash equivalent
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| Call: | Automatically at par if least-performing stock closes at or above initial share price on any quarterly observation date
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| Initial price: | $218.18 for salesforce and $157.42 for Qualcomm
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| Coupon barriers: | $130.91 for salesforce and $94.45 for Qualcomm, 60% of initial prices
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| Downside thresholds: | $130.91 for salesforce and $94.45 for Qualcomm, 60% of initial prices
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| Equity ratios: | 4.5834 for salesforce and 6.3524 for Qualcomm
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| Pricing date: | Jan. 13
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| Settlement date: | Jan. 19
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2.35%
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| Cusip: | 90276BMV2
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