Published on 2/19/2021 in the Prospect News Structured Products Daily.
New Issue: UBS sells $44.88 million contingent yield trigger autocallables on stock basket
By Marisa Wong
Los Angeles, Feb. 19 – UBS AG, London Branch priced $44.88 million of trigger autocallable contingent yield notes due Feb. 20, 2026 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., Facebook, Inc., Alphabet Inc., Microsoft Corp., Netflix, Inc., Nvidia Corp., Qualcomm Inc., Tesla, Inc. and Twitter, Inc.
The notes will pay a contingent quarterly coupon at an annualized rate of 8% if the basket closes at or above its coupon barrier level, 70% of its initial level, on the related quarterly observation date.
The notes will be called at par of $10 plus the coupon if the basket closes at or above its initial level on any quarterly observation date after six months.
The payout at maturity will be par unless the basket finishes below its 60% downside threshold level, in which case investors will lose 1% for each 1% decline of the basket from its initial level.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable contingent yield notes
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| Underlying basket: | Apple Inc. (Symbol: AAPL), Amazon.com, Inc. (Symbol: AMZN), Facebook, Inc. (Symbol: FB), Alphabet Inc. (Symbol: GOOGL), Microsoft Corp. (Symbol: MSFT), Netflix, Inc. (Symbol: NFLX), Nvidia Corp. (Symbol: NVDA), Qualcomm Inc. (Symbol: QCOM), Tesla, Inc. (Symbol: TSLA) and Twitter, Inc. (Symbol: TWTR); each with 10% weight
|
| Amount: | $44,875,400
|
| Maturity: | Feb. 20, 2026
|
| Coupon: | 8%, payable each quarter that basket closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par of $10
|
| Call: | At par plus coupon if basket closes at or above initial level on any quarterly observation date after six months
|
| Payout at maturity: | Par unless basket finishes below downside threshold, in which case 1% loss for each 1% decline from initial level
|
| Initial basket level: | 100
|
| Coupon barrier: | 70, 70% of initial level
|
| Downside threshold: | 60, 60% of initial level
|
| Initial share prices: | $130.84 for Apple, $3,308.64 for Amazon, $273.57 for Facebook, $2,118.62 for Alphabet, $244.20 for Microsoft, $551.34 for Netflix, $596.24 for Nvidia, $144.75 for Qualcomm, $798.15 for Tesla, $71.79 for Twitter
|
| Pricing date: | Feb. 17
|
| Settlement date: | Feb. 22
|
| Agents: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 2.25%
|
| Cusip: | 90278X418
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