Published on 5/21/2020 in the Prospect News Structured Products Daily.
New Issue: UBS prices $3.26 million capped buffer gears linked to stock basket
By Sarah Lizee
Olympia, Wash., May 21 – UBS AG London Branch priced $3.26 million of 0% capped buffer gears due May 19, 2022 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the common stocks of Apple Inc., Amazon.com, Inc., Alibaba Group Holding Ltd., Baidu, Inc., Facebook, Inc., Alphabet Inc., Netflix, Inc., Nvidia Corp., Tesla, Inc. and Twitter, Inc., each with a 10% weight.
If the basket finishes at or above its initial level, the payout at maturity will be par plus 2 times the basket gain, up to a maximum return of par plus 34%.
If the basket falls by no more than 10%, the payout will be par.
Otherwise, investors will lose 1% for each 1% decline of the basket beyond the 10% buffer.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG London Branch
|
| Issue: | Capped buffer gears
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| Underlying basket: | Apple Inc., Amazon.com, Inc., Alibaba Group Holding Ltd., Baidu, Inc., Facebook, Inc., Alphabet Inc., Netflix, Inc., Nvidia Corp., Tesla, Inc. and Twitter, Inc., each with a 10% weight
|
| Amount: | $3,255,500
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| Maturity: | May 19, 2022
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| Coupon: | 0%
|
| Price: | Par
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| Payout at maturity: | If basket finishes at or above its initial level, par plus 2 times return up to maximum return of par plus 34%; if basket falls by up to 10%, par; otherwise, 1% loss for each 1% decline of basket beyond the 10% buffer
|
| Initial levels: | $307.71 for Apple, $2,409.78 for Amazon, $203.68 for Alibaba, $99.86 for Baidu, $210.88 for Facebook, $1,373.06 for Alphabet, $454.19 for Netflix, $339.63 for Nvidia, $799.17 for Tesla, $29.00 for Twitter
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| Buffer level: | 90% of initial basket level
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| Pricing date: | May 15
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| Settlement date: | May 20
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2%
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| Cusip: | 90281J562
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