Published on 1/24/2020 in the Prospect News Structured Products Daily.
New Issue: UBS sells $14.47 million trigger autocallable contingent yield notes on ETFs
By Sarah Lizee
Olympia, Wash., Jan. 24 – UBS AG, London Branch priced $14.47 million of trigger autocallable contingent yield notes due Jan. 21, 2022 linked to the lesser performing of the SPDR S&P Bank ETF, the SPDR S&P Biotech ETF and the Consumer Staples Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.1% if each ETF closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter.
The notes will be called at par if each ETF closes at or above its initial level on any quarterly observation date other than the final one.
The payout at maturity will be par unless either ETF finishes below the 70% downside threshold, in which case investors will lose 1% for each 1% decline of the worst performing ETF.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying ETFs: | SPDR S&P Bank ETF, the SPDR S&P Biotech ETF and the Consumer Staples Select Sector SPDR fund
|
| Amount: | $14,472,000
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| Maturity: | Jan. 21, 2022
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| Coupon: | 11.1%, payable quarterly if each ETF closes at or above coupon barrier on observation date
|
| Price: | Par
|
| Call: | At par plus contingent coupon if both ETFs close at or above initial levels on any quarterly observation date other than the final one
|
| Payout at maturity: | Par unless either ETF closes below downside threshold, in which case 1% loss for each 1% decline of worst performing ETF
|
| Initial levels: | $46.84 for bank fund, $96.27 for biotech fund, $63.82 for consumer staples
|
| Coupon barriers: | $32.79 for bank fund, $67.39 for biotech fund, $44.67 for consumer staples; 70% of initial levels
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| Downside thresholds: | $32.79 for bank fund, $67.39 for biotech fund, $44.67 for consumer staples; 70% of initial levels
|
| Pricing date: | Jan. 17
|
| Settlement date: | Jan. 27
|
| Agents: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.75%
|
| Cusip: | 90270K2Z1
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