Published on 8/26/2020 in the Prospect News Structured Products Daily.
New Issue: UBS prices $3 million trigger autocallable contingent yield notes on stock basket
By Sarah Lizee
Olympia, Wash., Aug. 26 – UBS AG, London Branch priced $3 million of trigger autocallable contingent yield notes due Aug. 29, 2023 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The stocks are Apple Inc., Amazon.com, Inc., Walt Disney Co., DocuSign, Inc., Facebook, Inc., Alphabet Inc., lululemon athletica inc., Microsoft Corp., Tesla, Inc. and Zoom Video Communications, Inc., each with a 10% weight.
The notes will pay a contingent quarterly coupon at an annual rate of 12.5% if the basket closes at or above its coupon barrier level, 75% of its initial level, on the related quarterly observation date.
The notes will be called at par of $10 plus the coupon if the basket closes at or above its initial level on any quarterly observation date after six months.
The payout at maturity will be par unless the basket finishes below its 75% downside threshold level, in which case investors will lose 1% for each 1% decline of the basket from its initial level.
UBS Financial Services Inc. 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: | Apple Inc., Amazon.com, Inc., Walt Disney Co., DocuSign, Inc., Facebook, Inc., Alphabet Inc., lululemon athletica inc., Microsoft Corp., Tesla, Inc. and Zoom Video Communications, Inc., each with a 10% weight
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| Amount: | $3 million
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| Maturity: | Aug. 29, 2023
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| Coupon: | 12.5%, payable each quarter that basket closes at or above coupon barrier on observation date for that quarter
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| Price: | Par of $10
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| Call: | At par plus coupon if basket closes at or above initial level on any quarterly observation date after six months
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| Payout at maturity: | Par unless basket finishes below downside threshold, in which case 1% loss for each 1% decline from initial level
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| Initial levels: | $503.43 for Apple, $3,307.46 for Amazon, $130.69 for Disney, $204.49 for DocuSign, $271.39 for Facebook, $1,585.15 for Alphabet, $376.31 for lululemon, $213.69 for Microsoft, $2,014.20 for Tesla, $282.28 for Zoom
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| Downside threshold/coupon barrier: | 75% of initial basket level
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| Pricing date: | Aug. 24
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| Settlement date: | Aug. 27
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2%
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| Cusip: | 90281M250
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