Published on 3/4/2021 in the Prospect News Structured Products Daily.
New Issue: UBS sells $500,000 trigger autocallable contingent yield notes on three stocks
By Wendy Van Sickle
Columbus, Ohio, March 4 – UBS AG, London Branch priced $500,000 of trigger autocallable contingent yield notes due Feb. 23, 2024 linked to the least performing of the common stocks of Diamondback Energy, Inc., Chevron Corp. and Exxon Mobil Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 20% per year if the least-performing stock closes at or above its coupon barrier, 60% of its initial share price, on the observation date.
The notes will be automatically called at par if the least-performing stock closes 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 the least-performing stock is greater than or equal to that stock’s downside threshold level, 60% of its initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing stock’s final share price is less than its initial share price.
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: | Diamondback Energy, Inc., Chevron Corp. and Exxon Mobil Corp.
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| Amount: | $500,000
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| Maturity: | Feb. 23, 2024
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| Contingent coupon: | 20% annual rate, payable quarterly if least-performing stock closes at or above coupon barrier level on related observation date
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| Price: | Par
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| Payout at maturity: | Par unless least-performing stock finishes below downside threshold level, in which case 1% loss for each 1% that least-performing stock declines from initial price
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| Call: | Automatically at par if least-performing stock closes at or above initial share price on any quarterly observation date after six months
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| Initial prices: | $65.57 for Diamondback, $95.80 for Chevron, $52.37 for Exxon Mobil
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| Coupon barriers: | $39.34 for Diamondback, $57.48 for Chevron, $31.42 for Exxon Mobil; 60% of initial prices
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| Downside thresholds: | $39.34 for Diamondback, $57.48 for Chevron, $31.42 for Exxon Mobil; 60% of initial prices
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| Pricing date: | Feb. 19
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| Settlement date: | Feb. 24
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 3.5%
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| Cusip: | 90276BRK1
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