New Issue: UBS sells $2.93 million trigger autocallable contingent yield notes on BofA, Citi

By Marisa Wong

Morgantown, W.Va., June 26 – UBS AG, London Branch priced $2.93 million of trigger autocallable contingent yield notes due June 18, 2021 linked to the common stocks of Bank of America Corp. and Citigroup Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at a rate of 8% per year if each stock closes at or above the coupon barrier level, 70% of the initial share price, on the observation date for that quarter.

After six months, the notes will be automatically called at par of $10 if each stock closes at or above its 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, 70% 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 lesser performing stock is less than its 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
Underlying stock:	Bank of America Corp. (Symbol: BAC) and Citigroup Inc. (Symbol: C)
Amount:	$2,925,000
Maturity:	June 18, 2021
Contingent coupon:	8%, payable each quarter that each stock closes at or above coupon barrier on observation date for that quarter
Price:	Par of $10
Payout at maturity:	Par unless either stock finishes below downside threshold, in which case 1% loss for each 1% decline of laggard stock from initial price
Call:	After six months, automatically at par if each stock closes at or above initial price on any quarterly observation date other than the final one
Initial prices:	$29.28 for BofA, $66.34 for Citi
Coupon barriers:	$20.50 for BofA, $46.44 for Citi; 70% of initial price
Downside thresholds:	$20.50 for BofA, $46.44 for Citi,; 70% of initial price
Pricing date:	June 15
Settlement date:	June 19
Agents:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	2.65%
Cusip:	90270KSD2

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