Published on 8/26/2021 in the Prospect News Structured Products Daily.
New Issue: UBS prices $5.5 million trigger autocallable notes on airline-stock basket
By Wendy Van Sickle
Columbus, Ohio, Aug. 26 – UBS AG, London Branch priced $5.5 million of 0% trigger autocallable notes due March 1, 2024 linked to an equally weighted basket of airline stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket contains the stocks of Alaska Air Group, Inc., Delta Air Lines, Inc., SkyWest, Inc. and United Airlines Holdings, Inc., each with a 25% weight.
The notes will be automatically called at par plus 8% per year if the basket closes at or above the initial level on any annual observation date.
If the notes are not called and the basket finishes 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 final level is less than the initial level.
UBS Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable notes
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| Underlying basket: | Alaska Air Group, Inc., Delta Air Lines, Inc., SkyWest, Inc. and United Airlines Holdings, Inc., equal weights
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| Amount: | $5,550,000
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| Maturity: | March 1, 2024
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par unless basket finishes below downside threshold, in which case 1% loss for each 1% decline from initial level
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| Call: | Automatically at par plus 8% per year if basket closes at or above initial level on any annual observation date
|
| Initial stock levels: | $63.27 for Alaska, $44.43 for Delta, $44.95 for SkyWest, $53.88 for United
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| Downside threshold: | 60% of initial level
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| Pricing date: | June 25
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| Settlement date: | June 30
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| Agents: | UBS Securities LLC and UBS Investment Bank
|
| Fees: | 3.75%
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| Cusip: | 90276BU68
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