Published on 10/16/2019 in the Prospect News Structured Products Daily.
New Issue: UBS prices $6.61 million step-down trigger autocallables linked to Brent crude
By Kiku Steinfeld
Chicago, Oct. 16 – UBS AG, London Branch priced $6.61 million of 0% step-down trigger autocallable notes due Oct. 15, 2020 linked to the relevant nearby ICE-traded Brent crude oil futures contract, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par of $10 plus a call premium of 16.09% per year if the asset closes at or above its call threshold level on any quarterly observation date. The call threshold level will be equal to the initial asset level for every observation date except for the final observation date, Oct. 9, 2020. For the final observation date, the call threshold level will be 70% of the initial level.
If the notes are not subject to an automatic call, then the final level of the asset will be less than 70% of its initial level, and investors will be exposed to the decline of the asset from its initial level.
UBS Investment Bank is the underwriter and J.P. Morgan Securities LLC is the placement agent.
| Issuer: | UBS AG, London Branch
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| Issue: | Step-down trigger autocallable notes
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| Underlying asset: | Relevant nearby ICE-traded Brent crude oil futures contract
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| Amount: | $6,605,000
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| Maturity: | Oct. 15, 2020
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | 1% loss for every 1% that the asset’s final level is less than its initial level if asset finishes below 70% of initial level, otherwise subject to call
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| Call: | At par plus a call return of 16.09% per year if the asset closes at or above its initial level on any quarterly observation date except final date, Oct. 9, 2020, when call level will be 70% of the initial level
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| Initial price: | $62.39
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| Final call threshold: | $43.67, 70% of initial price
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| Pricing date: | Sept. 25
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| Settlement date: | Sept. 30
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| Underwriter: | UBS Investment Bank
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| Placement agent: | J.P. Morgan Securities LLC
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| Fees: | 1%
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| Cusip: | 90270KP52
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