New Issue: UBS prices $2.45 million capped market-linked notes on commodity basket

By William Gullotti

Buffalo, N.Y., May 12 – UBS AG, London Branch priced $2.45 million of 0% capped market-linked notes due Nov. 9, 2023 linked to the performance of an equally-weighted basket of eight commodities, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of West Texas Intermediate light sweet crude oil futures contracts, Brent crude oil, natural gas futures, corn, soybeans, wheat, copper and zinc.

If the basket finishes positive, the payout at maturity will be par plus 1.3 times the basket gain, subject to a maximum return of par plus 25%.

Otherwise, investors will lose 1% for every 1% of basket decline to a minimum return of 98% of par.

UBS Investment Bank is the agents with J.P. Morgan Securities LLC as placement agent.

Issuer:	UBS AG, London Branch
Issue:	Capped market-linked notes
Underlying assets:	West Texas Intermediate light sweet crude oil futures contracts, Brent crude oil, natural gas futures, corn, soybeans, wheat, copper, zinc; equal weights
Amount:	$2,450,000
Maturity:	Nov. 9, 2023
Coupon:	0%
Price:	Par
Payout at maturity:	If the basket finishes positive, par plus 1.3 times basket gain capped at 25%; otherwise, lose 1% for every 1% decline to minimum payout of 98% of par
Initial prices:	$109.77 for WTI, $112.39 for Brent, $8.043 for natural gas, $7.9225 for corn, $16.555 for soybeans, $10.97 for wheat, $9,428.00 for copper, $3,829.00 for zinc
Pricing date:	May 6
Settlement date:	May 11
Agents:	UBS Investment Bank with J.P. Morgan Securities LLC as placement agent
Fees:	1.25%
Cusip:	90279FCA7

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