Published on 7/14/2021 in the Prospect News Structured Products Daily.
New Issue: UBS prices $11.54 million trigger autocallable contingent yield notes on stock basket
By Wendy Van Sickle
Columbus, Ohio, July 14 – UBS AG, London Branch priced $11.54 million of trigger autocallable contingent yield notes due July 12, 2024 linked to an equally weighted basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the common stocks of Alcoa Corp., ConocoPhillips, Deere & Co., Freeport-McMoRan Inc., FMC Corp., Barrick Gold Corp., Mosaic Co., Pioneer Natural Resources Co., Steel Dynamics, Inc. and Newmont Corp.
The notes will pay a contingent quarterly coupon at an annualized rate of 7.2% if the basket closes at or above its 70% coupon barrier on the related quarterly observation date.
The notes will be called at par of $10 plus accrued interest if the basket closes at or above the initial basket level on any quarterly observation date after six months.
If the notes are not called, the payout at maturity will be par unless the final price of the basket is less than the 70% downside threshold, in which case investors will be fully exposed to the basket level decline.
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 stocks: | Alcoa Corp., ConocoPhillips, Deere & Co., Freeport-McMoRan Inc., FMC Corp., Barrick Gold Corp., Mosaic Co., Pioneer Natural Resources Co., Steel Dynamics, Inc., Newmont Corp., each with a 10% weight
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| Amount: | $11,540,720
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| Maturity: | July 12, 2024
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| Coupon: | 7.2% annualized, payable each quarter that basket closes at or above coupon barrier on observation date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par unless final basket level is less than downside threshold, in which case full exposure to losses
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| Call: | Automatically at par plus accrued interest if basket closes at or above initial share price on any quarterly observation date after six months
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| Initial share price: | $37.44 for Alcoa, $60.13 for ConocoPhillips, $349.48 for Deere, $36.50 for Freeport-McMoRan, $107.66 for FMC, $21.13 for Barrick Gold, $31.79 for Mosaic, $61.50 for Steel, $158.00 for Pioneer, $63.89 for Newmont
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| Coupon barrier: | 70% of initial level
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| Downside threshold: | 70% of initial level
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| Pricing date: | July 9
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| Settlement date: | July 14
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 2%
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| Cusip: | 90276B373
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