By William Gullotti
Buffalo, N.Y., Feb. 9 – UBS AG, London Branch priced $4 million of trigger autocallable contingent yield notes due Jan. 31, 2024 linked to the least performing of the Invesco QQQ Trust, Series 1 and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 18.75% per year if each ETF closes at or above its coupon barrier, 85% of its initial level, on the related observation date.
The notes will be automatically called at par plus coupon if the shares of each ETF close at or above its initial share price on any quarterly call observation date.
If the notes are not called and the final share price of each ETF is greater than or equal to its coupon barrier, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon barrier but not below 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 of the least performing ETF is less than its initial share price.
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 ETFs: | Invesco QQQ Trust, Series 1, SPDR S&P Biotech ETF
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| Amount: | $2,262,750
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| Maturity: | Jan. 31, 2024
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| Coupon: | 18.75% per year, paid quarterly, if each ETF closes at or above its coupon barrier on any related observation date
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| Price: | Par of $10
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| Payout at maturity: | Par plus final coupon if each ETF finishes at or above coupon barrier; if worst performer finishes below coupon barrier but at or above downside threshold, par; otherwise, 1% loss for each 1% decline of laggard ETF from initial level
|
| Call: | Automatically at par plus coupon if each ETF closes at or above initial level on any quarterly call observation date
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| Initial levels: | $345.11 for QQQ, $91.38 for SPDR
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| Coupon barrier levels: | $293.34 for QQQ, $77.67 for SPDR; 85% of initial levels
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| Downside thresholds: | $241.58 for QQQ, $63.97 for SPDR; 70% of initial levels
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| Strike date: | Jan. 25
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| Pricing date: | Jan. 26
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| Settlement date: | Jan. 31
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | None
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| Cusip: | 90279DA63
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