Published on 3/2/2021 in the Prospect News Structured Products Daily.
New Issue: UBS sells $14.88 million trigger autocallable contingent yield notes on ETFs
By Wendy Van Sickle
Columbus, Ohio, March 2 – UBS AG, London Branch priced $14.88 million of trigger autocallable contingent yield notes due March 2, 2023 linked to the SPDR S&P Regional Banking ETF, the Communication Services Select Sector SPDR fund and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of14% if each ETF closes at or above its coupon barrier, 70% of its initial level, on the observation date for that period.
The notes will be redeemed at par plus the coupon if all ETFs close above their initial levels on any quarterly observation date.
The payout at maturity will be par plus the coupon unless any ETF finishes below its 70% downside threshold, in which case investors will lose 1% for each 1% decline of the worst performing ETF from its initial level.
UBS Securities LLC and UBS Financial Services Inc. are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying ETFs: | SPDR S&P Regional Banking ETF, Communication Services Select Sector SPDR fund and Financial Select Sector SPDR fund
|
| Amount: | $14,883,000
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| Maturity: | March 2, 2023
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| Coupon: | 14%, payable quarterly if each ETF closes at or above coupon barrier on observation date
|
| Price: | Par of $10
|
| Call: | At par plus the coupon if all ETFs close above their initial levels on any quarterly observation date
|
| Payout at maturity: | Par plus the coupon if all ETFs finish above 70% of initial level; otherwise, 1% loss for each 1% decline of the worst performing ETF from initial level
|
| Initial levels: | $64.26 for banking, $71.56 for communication, $32.31 for financial
|
| Coupon barriers: | $44.98 for banking, $50.10 for communication, $22.62 for financial, 70% of initial levels
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| Downside thresholds: | $44.98 for banking, $50.10 for communication, $22.62 for financial, 70% of initial levels
|
| Pricing date: | Feb. 26
|
| Settlement date: | March 4
|
| Agents: | UBS Securities LLC and UBS Financial Services Inc.
|
| Fees: | 2%
|
| Cusip: | 90276BRT2
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