Published on 2/6/2020 in the Prospect News Structured Products Daily.
New Issue: UBS prices $1.45 million trigger autocallable contingent yield notes on stocks
By Wendy Van Sickle
Columbus, Ohio, Feb. 6 – UBS AG, London Branch priced $1.45 million of trigger autocallable contingent yield notes due Feb. 3, 2025 linked to the common stocks of Darden Restaurants, Inc., Starbucks Corp. and McDonald’s Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 8% per year if the shares of each stock close at or above the coupon barrier level, 60% of the initial share prices, on the observation date for that quarter.
The notes will be automatically called at par plus any coupon due if the shares of each stock close at or above its initial share price on any quarterly call observation date after one year.
If the notes are not called and the final share price of each stock is greater than or equal to the downside threshold level, 60% of the initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price of the least performing stock is less than its initial share price.
UBS Securities LLC 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: | Darden Restaurants, Inc., Starbucks Corp. and McDonald’s Corp.
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| Amount: | $1.45 million
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| Maturity: | Feb. 3, 2025
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| Contingent coupon: | 8%, payable quarterly if each stock closes at or above coupon barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below downside threshold level, in which case 1% loss for each 1% decline of laggard stock from initial level
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| Call: | Automatically at par plus any coupon due if each stock closes at or above initial level on any quarterly call observation date after one year
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| Initial levels: | $119.21 for Darden, $86.72 for Starbucks, $214.44 for McDonald’s
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| Coupon barriers: | $71.53 for Darden, $52.03 for Starbucks, $128.66 for McDonald’s; 60% of initial levels
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| Downside thresholds: | $71.53 for Darden, $52.03 for Starbucks, $128.66 for McDonald’s; 60% of initial levels
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| Pricing date: | Jan. 29
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| Settlement date: | Jan. 31
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 3.35%
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| Cusip: | 90270K3J6
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