Published on 9/24/2021 in the Prospect News Structured Products Daily.
New Issue: UBS prices $4.64 million trigger autocallable contingent yield notes on four stocks
By William Gullotti
Buffalo, N.Y., Sept. 24 – UBS AG, London Branch priced $4.64 million of trigger autocallable contingent yield notes due Sept. 22, 2026 linked to the least performing of the common stocks of Amazon.com, Inc., Facebook, Inc., Netflix, Inc. and Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 14% per year if each stock closes at or above its coupon barrier, 60% of its initial level, on the related observation date.
The notes will be automatically called at par plus coupon if the shares of each stock close at or above its initial share price on any quarterly call observation date after six months.
If each stock finishes at or above its coupon barrier, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below the coupon barrier but at or above its 50% downside threshold, 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 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: | Amazon.com, Inc., Facebook, Inc., Netflix, Inc., Tesla, Inc.
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| Amount: | $4,636,000
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| Maturity: | Sept. 22, 2026
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| Coupon: | 14% per year, paid quarterly, if each stock closes at or above its coupon barrier on any related observation date
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above coupon barrier, par plus final coupon; if worst performer finishes below coupon barrier but at or above downside threshold, par; otherwise, 1% loss for each 1% decline of laggard stock from initial level
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| Call: | Automatically at par plus coupon if each stock closes at or above initial level on any quarterly call observation date after six months
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| Initial levels: | $3,462.52 for Amazon, $364.72 for Facebook, $589.35 for Netflix, $759.49 for Tesla
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| Coupon barrier levels: | $2,077.51 for Amazon, $218.83 for Facebook, $353.61 for Netflix, $455.69 for Tesla; 60% of initial levels
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| Downside thresholds: | $1,731.26 for Amazon, $182.36 for Facebook, $294.68 for Netflix, $379.75 for Tesla; 50% of initial levels
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| Pricing date: | Sept. 17
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| Settlement date: | Sept. 22
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 4%
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| Cusip: | 90279DGW0
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