Published on 7/7/2023 in the Prospect News Structured Products Daily.
New Issue: UBS prices $1.14 million trigger autocallable contingent yield notes on three tech stocks
By William Gullotti
Buffalo, N.Y., July 7 – UBS AG, London Branch priced $1.14 million of trigger autocallable contingent yield notes due July 6, 2026 linked to the least performing of the common stocks of Advanced Micro Devices, Inc., Snowflake Inc. and Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at the rate of 32.1% per year if each stock closes at or above its coupon barrier, 60% of its initial level, on the corresponding observation date.
The notes will be automatically called at par plus coupon if the shares of each stock closes at or above its initial share price on any monthly call observation date after three months.
If the notes are not called and the final share price of each stock is greater than or equal to the coupon barrier, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon barrier but at or above the 50% downside threshold level, the payout will be par. Otherwise, investors will lose 1% for every 1% that the final share price of the least performing stock is less than 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: | Advanced Micro Devices, Inc., Snowflake Inc., Tesla, Inc.
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| Amount: | $1,135,000
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| Maturity: | July 6, 2026
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| Coupon: | 32.1% per year, paid monthly, if each stock closes at or above its coupon barrier on the related observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon if each stock finishes at or above coupon barrier level; if worst performer finishes below coupon barrier but at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performer from initial level
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| Call: | Automatically at par plus coupon if each stock closes at or above initial level on any monthly call observation date after three months
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| Initial levels: | $113.91 for AMD, $175.98 for Snowflake, $261.77 for Tesla
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| Coupon barrier levels: | $68.35 for AMD, $105.59 for Snowflake, $157.06 for Tesla; 60% of initial levels
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| Downside thresholds: | $56.96 for AMD, $87.99 for Snowflake, $130.89 for Tesla; 50% of initial levels
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| Pricing date: | June 30
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| Settlement date: | July 6
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 3.25%
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| Cusip: | 90279GRY7
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