Published on 9/20/2023 in the Prospect News Structured Products Daily.
New Issue: UBS prices $7.65 million airbag callable contingent yield notes on index, ETFs
By Wendy Van Sickle
Columbus, Ohio, Sept. 20 – UBS AG, London Branch priced $7.65 million of airbag callable contingent yield notes due March 19, 2026 linked to the least performing of the iShares Russell 1000 Growth ETF, the S&P 500 index and the Invesco S&P 500 Equal Weight ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly at an annualized rate of 9.8% if the least-performing asset closes at or above its coupon barrier, 75% of the initial level, on the related observation date.
The notes will be callable at par plus any coupon otherwise due on any monthly observation date after three months.
The payout at maturity will be par plus the final coupon unless the final level of the least performing asset is less than the downside threshold, 75% of the initial level, in which case investors will lose 1.3333% for each 1% loss of the least-performing asset beyond the downside threshold.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Airbag callable contingent yield notes
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| Underlying assets: | iShares Russell 1000 Growth ETF, S&P 500 index, Invesco S&P 500 Equal Weight ETF
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| Amount: | $7,652,000
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| Maturity: | March 19, 2026
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| Coupon: | 9.8%, payable monthly if least-performing asset closes at or above coupon barrier on related observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon unless final level of least-performing asset is less than downside threshold, in which case 1.3333% loss for each 1% loss of least-performing asset beyond downside threshold
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| Call option: | At par plus any coupon otherwise due on any monthly observation date after three months
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| Initial levels: | $276.58 for iShares Russell 1000, $147.58 for Equal Weight, 4,450.32 for S&P
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| Coupon barriers: | $207.44 for iShares Russell 1000, $110.69 for Equal Weight, 3,337.74 for S&P; 75% of initial levels
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| Downside thresholds: | $207.44 for iShares Russell 1000, $110.69 for Equal Weight, 3,337.74 for S&P; 75% of initial levels
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| Pricing date: | Sept. 15
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| Settlement date: | Sept. 20
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 0.6%
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| Cusip: | 90279WDH4
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