Published on 11/22/2021 in the Prospect News Structured Products Daily.
New Issue: UBS sells $8.5 million trigger autocallable contingent yield notes on stock basket
By Wendy Van Sickle
Columbus, Ohio, Nov. 22 – UBS AG, London Branch priced $8.5 million of trigger autocallable contingent yield notes due Nov. 20, 2024 linked to an equally weighted basket of 10 stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the common stocks of Boeing Co., Boston Scientific Corp., Citizens Financial Group, Inc., Darden Restaurants, Inc., Capital One Financial Corp., Eastman Chemical Co., Hudson Pacific Properties, Inc., Southwest Airlines Co., Micron Technology, Inc. and Pioneer Natural Resources Co.
The notes will pay a contingent quarterly coupon at an annualized rate of 7.4% if the basket closes at or above its 75% coupon barrier on the related quarterly observation date.
The notes will be called at par plus coupon 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 75% downside threshold, in which case investors will be fully exposed to the basket decline 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 stocks: | Boeing Co., Boston Scientific Corp., Capital One Financial Corp., Citizens Financial Group, Inc., Darden Restaurants, Inc., Eastman Chemical Co., Hudson Pacific Properties, Inc., Southwest Airlines Co., Micron Technology, Inc. and Pioneer Natural Resources Co.; each with a 10% weight
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| Amount: | $8.5 million
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| Maturity: | Nov. 20, 2024
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| Coupon: | 7.4% annualized, payable each quarter that basket closes at or above coupon barrier on observation date for that quarter
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| Price: | Par
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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 coupon if basket closes at or above initial share price on any quarterly observation date after six months
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| Initial share price: | $233.09 for Boeing, $41.43 for Boston Scientific, $156.36 for Capital One, $49.95 for Citizens, $115.11 for Eastman, $147.68 for Darden Restaurants, $27.55 for Hudson Pacific, $49.13 for Southwest, $76.78 for Micron and $182.66 for Pioneer
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| Coupon barrier: | 75% of initial level
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| Downside threshold: | 75% of initial level
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| Pricing date: | Nov. 15
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| Settlement date: | Nov. 17
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 2%
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| Cusip: | 90279D140
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