Published on 11/13/2020 in the Prospect News Structured Products Daily.
New Issue: UBS prices $20.38 million contingent yield trigger autocallables on stock basket
By Marisa Wong
Los Angeles, Nov. 13 – UBS AG, London Branch priced $20.38 million of trigger autocallable contingent yield notes due Nov. 14, 2025 linked to an equally weighted basket of 10 stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket stocks are 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 quarter, the notes will pay a contingent coupon at a rate of 8% per year if the basket closes at or above the coupon barrier, 70% of the initial level, on the observation date for that quarter.
The notes will be automatically called at par of $10 if the basket closes at or above the initial level on any quarterly observation date.
If the notes are not called and the basket finishes at or above the downside threshold level, 60% of the initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% basket decline below the initial level.
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
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| Underlying basket: | Apple Inc. (Symbol: AAPL), Amazon.com, Inc. (Symbol: AMZN), Alibaba Group Holding Ltd. (Symbol: BABA), Baidu, Inc. (Symbol: BIDU), Facebook, Inc. (Symbol: FB), Alphabet Inc. (Symbol: GOOGL), Netflix, Inc. (Symbol: NFLX), Nvidia Corp. (Symbol: NVDA), Tesla, Inc. (Symbol: TSLA) and Twitter, Inc. (Symbol: TWTR); equally weighted
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| Amount: | $20,375,310
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| Maturity: | Nov. 14, 2025
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| Contingent coupon: | 8% per year, payable quarterly if basket closes at or above coupon barrier on related quarterly observation date
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| Price: | Par of $10
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| Payout at maturity: | Par unless basket finishes below downside threshold, in which case 1% loss for each 1% basket decline from initial level
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| Call: | Automatically at par if basket closes at or above initial level on any quarterly observation date
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| Initial share prices: | $119.49 for Apple, $3,137.39 for Amazon, $265.65 for Alibaba, $143.06 for Baidu, $276.48 for Facebook, $1,747.23 for Alphabet, $490.76 for Netflix, $536.72 for Nvidia, $417.13 for Tesla, $43.63 for Twitter
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| Coupon barrier: | 70% of initial basket level
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| Downside threshold: | 60% of initial basket level
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| Pricing date: | Nov. 11
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| Settlement date: | Nov. 16
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2%
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| Cusip: | 90278R288
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