Published on 7/29/2020 in the Prospect News Structured Products Daily.
New Issue: UBS prices $7.98 million contingent income autocalls on Slack Technologies
By Wendy Van Sickle
Columbus, Ohio, July 29 – UBS AG, London Branch priced $7.98 million of contingent income autocallable securities due Jan. 28, 2021 linked to the common stock of Slack Technologies, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 15% per year if the shares close at or above the coupon barrier, 60% of the initial share price, on the observation date for that month.
The notes will be automatically called at par of $10 if the shares close at or above the initial share price on any monthly observation date except the final one.
The payout at maturity will be par unless the stock finishes below its 60% downside threshold level, in which case investors will receive a number of shares of the stock equal to $1,000 divided by the initial share price, payable in cash.
UBS Securities LLC is the underwriter. Morgan Stanley Wealth Management is the dealer.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
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| Underlying stock: | Slack Technologies, Inc.
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| Amount: | $7,979,700
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| Maturity: | Jan. 28, 2021
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| Contingent coupon: | 15%, payable monthly if stock closes at or above coupon barrier level on related monthly observation date
|
| Price: | Par of $10
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| Payout at maturity: | Par unless stock finishes below downside threshold, in which case a number of shares of stock equal to $1,000 divided by the initial share price, payable in cash
|
| Call: | Automatically at par if stock closes at or above initial price on any monthly observation date other than final one
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| Initial price: | $29.72
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| Coupon barrier: | $17.83, 60% of initial price
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| Downside threshold: | $17.83, 60% of initial price
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| Pricing date: | July 24
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| Settlement date: | July 29
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| Underwriter: | UBS Securities LLC
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| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 1.25%
|
| Cusip: | 90281K692
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