By Wendy Van Sickle
Columbus, Ohio, March 20 – UBS AG, London Branch priced $4 million of trigger autocallable contingent yield notes due March 18, 2021 linked to the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 10% per year if the ETF shares close 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 the 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, 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 is less than the initial share price.
UBS Financial Services Inc. 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 ETF: | SPDR S&P Oil & Gas Exploration & Production ETF
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| Amount: | $4 million
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| Maturity: | March 18, 2021
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| Contingent coupon: | 10%, payable quarterly if ETF closes at or above coupon barrier level on observation date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par unless ETF finishes below downside threshold level, in which case 1% loss for each 1% decline from initial level
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| Call: | After six months, automatically at par if ETF closes at or above initial level on any quarterly observation date other than the final one
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| Initial price: | $34.53
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| Coupon barrier: | $24.17, 70% of initial price
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| Downside threshold: | $24.17, 70% of initial price
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| Pricing date: | March 15
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| Settlement date: | March 20
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 1.25%
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| Cusip: | 90280Y693
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