By Devika Patel
Knoxville, Tenn., July 6 – UBS AG priced $4.79 million of trigger autocallable contingent yield notes due July 1, 2022 linked to the common stock of JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 7% per year if JPMorgan shares close at or above the coupon barrier level, 73.25% of the initial share price, on the observation date for that month.
Beginning July 30, 2018, the notes will be automatically called at par of $10 if JPMorgan shares close at or above the initial share price on any observation date other than the final one.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, 73.25% 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 is less than the initial share price.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying stock: | JPMorgan Chase & Co. (Symbol: JPM)
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| Amount: | $4,787,500
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| Maturity: | July 1, 2022
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| Contingent coupon: | 7%, payable monthly if stock closes at or above coupon barrier level on observation date for that month
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| Price: | Par of $10
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| Payout at maturity: | Par unless stock finishes below downside threshold level, in which case 1% loss for each 1% decline from initial level
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| Call: | Beginning July 30, 2018, automatically at par if stock closes at or above initial level on any monthly observation date other than the final one
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| Initial price: | $89.82
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| Coupon barrier: | $65.79, 73.25% of initial price
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| Downside threshold: | $65.79, 73.25% of initial price
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| Pricing date: | June 28
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| Settlement date: | June 30
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2.5%
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| Cusip: | 90280V699
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