By William Gullotti
Buffalo, N.Y., Oct. 12 – UBS AG, London Branch priced $2.36 million of contingent income autocallable securities due Oct. 9, 2025 linked to the performance of the Energy Select Sector SPDR Fund and the Industrial Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 13.15% if each ETF closes at or above its 75% coupon barrier on the corresponding observation date.
The notes will be called at par plus the contingent coupon if each ETF closes at or above initial level on any quarterly determination date after six months.
If all ETFs finish at or above the coupon barrier, the payout at maturity will be will be par plus the final coupon.
If the worst performer finishes below the coupon barrier but at or above the downside threshold level, 70% of initial level, the payout at maturity will be par.
Otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level.
UBS Securities LLC is the agent and Morgan Stanley Wealth Management is the dealer.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying funds: | Energy Select Sector SPDR Fund, Industrial Select Sector SPDR Fund
|
| Amount: | $2,358,000
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| Maturity: | Oct. 9, 2025
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| Coupon: | 13.15% per year, payable quarterly if all ETFs close at or above coupon barrier level on the relevant observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon if each ETF finishes at or above coupon barrier; if worst performer finishes below coupon barrier but at or above downside threshold level, par; otherwise, full exposure to decline of the worst performer from its initial level
|
| Call: | At par plus contingent coupon if all ETFs close at or above initial level on any quarterly determination date after six months
|
| Initial levels: | $85.73 for Energy, $100.78 for Industrial
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| Coupon barriers: | $64.30 for Energy, $75.59 for Industrial; 75% of initial level
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| Downside thresholds: | $60.01 for Energy, $70.55 for Industrial; 70% of initial level
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| Pricing date: | Oct. 6
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| Settlement date: | Oct. 12
|
| Agent: | UBS Securities LLC
|
| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 2.25%
|
| Cusip: | 90279WJQ8
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