Published on 6/24/2020 in the Prospect News Structured Products Daily.
New Issue: UBS prices $2.94 million trigger autocallable contingent yield notes on stocks
By Sarah Lizee
Olympia, Wash., June 24 – UBS AG, London Branch priced $2.94 million of trigger autocallable contingent yield notes due June 22, 2023 tied to the common stocks of Bank of America Corp., FedEx Corp. and Mastercard Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 12% per year if the shares of each stock close at or above the coupon barrier level, 50% of the initial share price, on the observation date for that quarter.
After six months, the notes will be automatically called at par if the shares of each stock close at or above the initial share price on any observation date other than the final one.
If the notes are not called and the final share price of each stock is greater than or equal to the downside threshold level, 50% of the initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price of the least performing stock is less than the initial share price.
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: | Bank of America Corp., FedEx Corp. and Mastercard Inc.
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| Amount: | $2,943,000
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| Maturity: | June 22, 2023
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| Contingent coupon: | 12%, payable quarterly if each stock closes at or above coupon barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either stock finishes below downside threshold level, in which case 1% loss for each 1% decline of laggard stock from initial level
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| Call: | After six months, automatically at par if each stock closes at or above initial level on any quarterly observation date other than the final one
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| Initial price: | $25.00 for BofA, $135.66 for FedEx, $303.76 for Mastercard
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| Coupon barrier: | $12.50 for BofA, $67.83 for FedEx, $151.88 for Mastercard; 50% of initial levels
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| Downside threshold: | $12.50 for BofA, $67.83 for FedEx, $151.88 for Mastercard; 50% of initial levels
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| Pricing date: | June 17
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| Settlement date: | June 22
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 3.5%
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| Cusip: | 90276BDB6
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