Published on 1/7/2022 in the Prospect News Structured Products Daily.
New Issue: UBS prices $2.68 million trigger autocallable contingent yield notes on stocks, ETF
By Wendy Van Sickle
Columbus, Ohio, Jan. 7 – UBS AG, London Branch priced $2.68 million of trigger autocallable contingent yield notes due Jan. 8, 2027 linked to the least performing of the shares of the SPDR S&P Biotech ETF, Pfizer Inc. and Eli Lilly and Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 9% per year if each asset closes at or above its coupon barrier, 60% of its initial level, on the related observation date.
The notes will be automatically called at par plus coupon if each asset closes at or above its initial level on any quarterly call observation date after one year.
If the notes are not called and the final level of each asset is greater than or equal to the 60% downside threshold, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the worst performer declines from its initial level.
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
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Underlying assets: | SPDR S&P Biotech ETF, Pfizer Inc. and Eli Lilly and Co.
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Amount: | $2,675,000
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Maturity: | Jan. 8, 2027
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Coupon: | 9% per year, paid quarterly, if each asset closes at or above its coupon barrier on any related observation date
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Price: | Par
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Payout at maturity: | If each asset finishes at or above downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline of laggard asset from initial level
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Call: | Automatically at par plus coupon if each asset closes at or above initial level on any quarterly call observation date after one year
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Initial levels: | $105.23 for ETF, $260.65 for Eli Lilly, $55.63 for Pfizer
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Coupon barrier levels: | $63.14 for ETF, $156.39 for Eli Lilly, $33.38 for Pfizer; 60% of initial levels
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Downside thresholds: | $63.14 for ETF, $156.39 for Eli Lilly, $33.38 for Pfizer; 60% of initial levels
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Pricing date: | Jan. 5
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Settlement date: | Jan. 7
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Agents: | UBS Securities LLC and UBS Investment Bank
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Fees: | 2.9%
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Cusip: | 90279DTG1
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