Published on 5/16/2021 in the Prospect News Structured Products Daily.
New Issue: UBS prices $2.5 million trigger autocallable contingent yield notes on four stocks
By William Gullotti
Buffalo, N.Y., May 17 – UBS AG, London Branch priced $2.5 million of trigger autocallable contingent yield notes due April 17, 2024 linked to the least performing of the common stocks of Centene Corp., Micron Technology, Inc., Netflix, Inc. and Qualcomm Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a coupon at the rate of 14% per year if each stock closes at or above its coupon barrier, 60% of its initial level, on any related observation date.
The notes will be automatically called at par plus the coupon if the shares of each stock close at or above its initial share price on any quarterly call observation date after six months.
If the notes are not called and the final share price of each stock is greater than or equal to the downside threshold level, 60% of the initial share price, the payout at maturity 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 share price.
UBS Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable contingent yield notes
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| Underlying stocks: | Centene Corp., Micron Technology, Inc., Netflix, Inc., Qualcomm Inc.
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| Amount: | $2,500,000
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| Maturity: | April 17, 2024
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| Coupon: | 14% per year, paid monthly, if each stock closes at or above its coupon barrier on any related observation date
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock finishes below downside threshold level, in which case 1% loss for each 1% decline of laggard stock from initial level
|
| Call: | Automatically at par plus coupon if each stock closes at or above initial level on any quarterly call observation date after six months
|
| Initial levels: | $62.43 for Centene, $95.59 for Micron, $552.78 for Netflix, $137.44 for Qualcomm
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| Coupon barrier levels: | $37.46 for Centene, $57.35 for Micron, $331.67 for Netflix, $82.46 for Qualcomm; 60% of initial levels
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| Downside threshold levels: | $37.46 for Centene, $57.35 for Micron, $331.67 for Netflix, $82.46 for Qualcomm; 60% of initial levels
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| Pricing date: | April 12
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| Settlement date: | April 15
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 3.3%
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| Cusip: | 90276BXT5
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