Published on 10/7/2019 in the Prospect News Structured Products Daily.
New Issue: UBS prices step down trigger autocallables linked to oil
By Angela McDaniels
Tacoma, Wash., Oct. 7 – UBS AG, London Branch priced $1 million of 0% step down trigger autocallable notes linked to the first nearby month futures contract for Brent crude oil as traded on the Intercontinental Exchange, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par plus 15.3% per year if the price of oil is greater than or equal to the call threshold level on any quarterly observation date. The call threshold level is equal to the initial price on the first three observation dates and equal to the downside threshold level, 70% of the initial price, on the final valuation date.
If the notes are not subject to an automatic call, then the final price of oil will be less than the downside threshold level and the investors will lose 1% for every 1% that the price of oil declines.
J.P. Morgan Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Step down trigger autocallable notes
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| Underlying commodity: | ICE-traded Brent crude oil futures contract
|
| Amount: | $1 million
|
| Maturity: | Oct. 22, 2020
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | 1% loss for every 1% that price of oil declines
|
| Call: | Automatically at par plus 15.3% per year if price of oil is greater than or equal to call threshold level on any quarterly observation date
|
| Initial price: | $57.51
|
| Final price: | Average of oil’s prices on five trading days ending Oct. 19, 2020
|
| Downside threshold: | $40.40, or 70% of initial price
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| Call threshold: | $57.71 (100% of initial price) on Jan. 17, 2020, April 17, 2020 and July 17, 2020 and $40.40 (70% of initial price) on Oct. 19, 2020
|
| Pricing date: | Oct. 3
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| Settlement date: | Oct. 8
|
| Agents: | J.P. Morgan Securities LLC and UBS Investment Bank
|
| Fees: | 1%
|
| Cusip: | 90270KQ85
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