By Wendy Van Sickle
Columbus, Ohio, Jan. 15 – UBS AG, London Branch priced $5 million of trigger autocallable contingent yield notes due Jan. 18, 2024 linked to the SPDR S&P MidCap 400 ETF trust, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Citigroup Inc.
Each quarter, the notes will pay a contingent coupon at an annualized rate of 4.5% if the ETF closes at or above its coupon barrier, 65% of its initial value, on the observation date for that quarter.
After one year, the notes will be redeemed at par of $10 plus the coupon if the ETF closes at or above its initial value on any quarterly observation date.
The payout at maturity will be par plus the coupon unless the ETF finishes below the 65% downside threshold, in which case investors will lose 1% for each 1% decline of the underlier from its initial value.
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 ETF: | SPDR S&P MidCap 400 ETF
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| Amount: | $5 million
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| Maturity: | Jan. 18, 2024
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| Coupon: | 4.5% per year, payable each quarter that ETF closes at or above coupon barrier on observation date for that quarter
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| Price: | Par of $10
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| Call: | After one year, at par plus coupon if ETF closes at or above initial value on any quarterly observation date
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| Payout at maturity: | Par plus coupon if ETF finishes at or above downside threshold; otherwise, 1% loss for each 1% decline of underlier from initial value
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| Initial value: | $440.82
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| Coupon barrier: | $286.53, 65% of initial value
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| Downside threshold: | $286.53, 65% of initial value
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| Pricing date: | Jan. 12
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| Settlement date: | Jan. 15
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 1.25%
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| Cusip: | 90278R809
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