Published on 7/8/2020 in the Prospect News Structured Products Daily.
New Issue: UBS prices $908,000 trigger autocallable contingent yield notes on two stocks
By Sarah Lizee
Olympia, Wash., July 8 – UBS AG, London Branch priced $908,000 of trigger autocallable contingent yield notes due July 5, 2023 linked to the common stocks of Bank of America Corp. and FedEx Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 11.05% per year if the shares of each stock close at or above the coupon barrier level, 50% of the initial share price, on the observation date for that month.
After six months, the notes will be automatically called at par if the shares of each stock 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 of each stock is greater than or equal to the downside threshold level, 50% 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 the initial share price.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable contingent yield notes
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| Underlying stock: | Bank of America Corp. and FedEx Corp.
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| Amount: | $908,000
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| Maturity: | July 5, 2023
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| Contingent coupon: | 11.05%, payable monthly if each stock closes at or above coupon barrier level on observation date for that month
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| Price: | Par
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| Payout at maturity: | Par unless either 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: | After six months, automatically at par if each stock closes at or above initial level on any quarterly observation date other than the final one
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| Initial price: | $23.39 for BofA, $134.55 for FedEx
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| Coupon barrier: | $11.70 for BofA, $67.28 for FedEx, 50% of initial price
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| Downside threshold: | $11.70 for BofA, $67.28 for FedEx, 50% of initial price
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| Pricing date: | June 29
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| Settlement date: | July 2
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 3.5%
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| Cusip: | 90276BDY6
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