Published on 2/22/2021 in the Prospect News Structured Products Daily.
New Issue: UBS prices $2.59 million trigger autocallable contingent yield notes on tech stocks
By Kiku Steinfeld
Chicago, Feb. 22 – UBS AG, London Branch priced $2.59 million of trigger autocallable contingent yield notes with memory interest due Feb. 15, 2024 linked to the common stocks of Apple Inc., Amazon.com, Inc. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon plus any previously unpaid coupons at the rate of 11% per year if the shares of each stock close at or above the coupon barrier level, 60% of the initial share price, on the observation date for that quarter.
After six months, the notes will be automatically called at par if the shares of each stock close at or above the initial share price on any observation date other than the final one.
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 the 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 with memory interest
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| Underlying stock: | Apple Inc., Amazon.com, Inc., Microsoft Corp.
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| Amount: | $2,588,000
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| Maturity: | Feb. 15, 2024
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| Contingent coupon: | 11%, payable quarterly plus any previously unpaid coupons if each stock closes at or above coupon barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either stock finishes below downside threshold level, in which case 1% loss for each 1% decline of laggard stock from initial level
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| Call: | After six months, automatically at par if each stock closes at or above initial level on any quarterly observation date other than the final one
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| Initial price: | $135.37 for Apple, $3,277.71 for Amazon, $244.99 for Microsoft
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| Coupon barrier: | $81.22 for Apple, $1,966.63 for Amazon, $146.99 for Microsoft, 60% of initial price
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| Downside threshold: | $81.22 for Apple, $1,966.63 for Amazon, $146.99 for Microsoft, 60% of initial price
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| Pricing date: | Feb. 12
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| Settlement date: | Feb. 18
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | None
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| Cusip: | 90276BQL0
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