By Angela McDaniels
Tacoma, Wash., March 6 – UBS AG, London Branch priced $5 million of trigger autocallable contingent yield notes due July 2, 2026 linked to the SPDR Dow Jones Industrial Average ETF trust and the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 11.75% per year if each ETF closes at or above its coupon barrier, 70% of its initial share price, on the observation date for that quarter.
After six months, the notes will be automatically called at par if each ETF closes at or above its initial share price on any quarterly observation date.
If the notes are not called and the final share price of each ETF is greater than or equal to its downside threshold, 60% of its initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the lesser performing ETF declines from its initial share price.
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 ETFs: | SPDR Dow Jones Industrial Average ETF trust and the Energy Select Sector SPDR fund
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| Amount: | $5 million
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| Maturity: | July 2, 2026
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| Coupon: | 11.75% per year, payable quarterly if each ETF closes at or above coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless final share price of either ETF is less than downside threshold, in which case 1% loss for every 1% that lesser performing ETF declines from initial share price
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| Call: | After six months, automatically at par if each ETF closes at or above initial share price on any quarterly observation date
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| Initial levels: | $339.23 for Dow trust and $78.93 for energy fund
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| Coupon barriers: | $237.46 for Dow trust and $55.25 for energy fund, or 70% of initial levels
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| Downside thresholds: | $203.54 for Dow trust and $47.36 for energy fund, or 60% of initial levels
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| Pricing date: | June 27, 2023
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| Settlement date: | June 30, 2023
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2%
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| Cusip: | 90289Y108
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