By Marisa Wong
Morgantown, W.Va., Jan. 24 – UBS AG, London Branch priced $2 million of trigger autocallable contingent yield notes due Jan. 21, 2022 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at a rate of 22% per year if the ETF closes at or above the coupon barrier level, 85% of the initial level, on the observation date for that quarter.
The notes will be automatically called at par if the ETF closes at or above the initial level on any observation date other than the final one.
If the notes are not called and the final level is greater than or equal to 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 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 Oil & Gas Exploration & Production ETF
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| Amount: | $2 million
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| Maturity: | Jan. 21, 2022
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| Contingent coupon: | 22%, payable each quarter that ETF closes at or above coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless ETF finishes below downside threshold, in which case 1% loss for each 1% decline from initial level
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| Call: | Automatically at par if ETF closes at or above initial level on any quarterly observation date other than the final one
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| Initial price: | $31.61
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| Coupon barrier: | $26.87, 85% of initial price
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| Downside threshold: | $18.97, 60% of initial price
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| Pricing date: | Jan. 18
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| Settlement date: | Jan. 24
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | None
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| Cusip: | 90270KWS4
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