Published on 11/10/2023 in the Prospect News Structured Products Daily.
New Issue: UBS sells $550,000 trigger autocallable contingent yield notes with memory on stocks
By Kiku Steinfeld
Chicago, Nov. 10 – UBS AG, London Branch priced $550,000 of trigger autocallable contingent yield notes with memory interest due April 16, 2025 linked to the least performing of the common stocks of Amazon.com, Inc., Bank of America Corp. and Netflix, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at the rate of 28% per year if each stock closes at or above its coupon barrier, 70% of its initial level, on any related observation date. Contingent coupon payments will include any previously unpaid coupons.
The notes will be automatically called at par plus the coupon if the shares of each stock close at or above its initial share price on any monthly call observation date after three months.
If the notes are not called and the final share price of each stock is greater than or equal to the downside threshold level, 70% of the initial share price, the payout at maturity will be par plus the final coupon.
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 with memory interest
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| Underlying stocks: | Amazon.com, Inc., Bank of America Corp. and Netflix, Inc.
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| Amount: | $550,000
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| Maturity: | April 16, 2025
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| Coupon: | 28% per year, paid monthly, if each stock closes at or above its coupon barrier on any related observation date; coupon payments will include previously unpaid coupons, if any
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| Price: | Par
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| Payout at maturity: | Par plus final coupon 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 coupon if each stock closes at or above initial level on any monthly call observation date after three months
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| Initial levels: | $99.92 for Amazon, $28.71 for BofA, $338.21 for Netflix
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| Coupon barrier levels: | $69.94 for Amazon, $20.10 for BofA, $236.75 for Netflix; 70% of initial levels
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| Downside thresholds: | $69.94 for Amazon, $20.10 for BofA, $236.75 for Netflix; 70% of initial levels
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| Pricing date: | April 11, 2023
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| Settlement date: | April 14, 2023
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 1%
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| Cusip: | 90279GBE8
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