Published on 3/31/2021 in the Prospect News Structured Products Daily.
New Issue: UBS prices $10.1 million contingent income autocalls on SPDR funds
By Wendy Van Sickle
Columbus, Ohio, March 31 – UBS AG, London Branch priced $10.1 million of contingent income autocallable securities due April 1, 2024 linked to the Health Care Select Sector SPDR fund, the Financial Select Sector SPDR fund and the Industrial Select Sector SPDR fund, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7.5% if each underlying fund closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes will be called at par if each fund closes at or above its initial level on any quarterly review date after six months.
The payout at maturity will be par plus any coupon due unless either underlying fund finishes below its 70% downside threshold, in which case investors will be fully exposed to any losses of the worst performing fund.
UBS Securities LLC is the agent with Morgan Stanley Wealth Management as a dealer.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying funds: | Health Care Select Sector SPDR fund, Financial Select Sector SPDR fund and Industrial Select Sector SPDR fund
|
| Amount: | $10,103,600
|
| Maturity: | April 1, 2024
|
| Coupon: | 7.5% annualized, payable quarterly if each fund closes at or above coupon barrier on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each fund finishes at or above downside threshold, par plus any coupon due; otherwise, 1% loss for each 1% decline of worst performing fund
|
| Call: | At par if each fund closes at or above its initial level on any quarterly call date after six months
|
| Initial levels: | $34.37 for Financial, $98.32 for Industrial, $117.02 for Health Care
|
| Coupon barrier levels: | $24.06 for Financial, $68.82 for Industrial, $81.91 for Health Care, 70% of initial levels
|
| Downside thresholds: | $24.06 for Financial, $68.82 for Industrial, $81.91 for Health Care, 70% of initial levels
|
| Pricing date: | March 26
|
| Settlement date: | March 31
|
| Agent: | UBS Securities LLC with Morgan Stanley Wealth Management as a dealer
|
| Fees: | 2.5%
|
| Cusip: | 90278X772
|
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