By Emma Trincal
New York, June 14 – UBS AG, London Branch priced $12.11 million of 0% trigger autocallable notes due June 14, 2023, linked to an equally weighted basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Financial Select Sector SPDR fund with a 25% weight, the Consumer Discretionary Select Sector SPDR fund with a 25% weight, the Energy Select Sector SPDR fund with a 25% weight and the Industrial Select Sector SPDR fund with a 25% weight.
The notes will be called at par plus a call return of 8% per year if the basket return is at or above its initial level on any quarterly observation date after six months. Previously unpaid call returns will also be paid.
If the notes are not called and the basket price finishes at or above the downside threshold, 75% of the initial level, the payout at maturity will be par. Otherwise, investors will be exposed to the price decline from the initial level.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable notes
|
| Underlying ETFs: | Financial Select Sector SPDR fund (25% weight), Consumer Discretionary Select Sector SPDR fund (25% weight), Energy Select Sector SPDR fund (25% weight) and Industrial Select Sector SPDR fund (25% weight)
|
| Amount: | $12,114,310
|
| Maturity: | June 14, 2023
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par if the basket finishes at or above the downside threshold; otherwise, full exposure to the basket’s decline
|
| Call: | Automatically at par plus 8% per year if the basket closes at or above initial level on any quarterly observation date after six months
|
| Initial asset levels: | $55.64 for Energy Select Sector SPDR fund; $37.76 for Financial Select Sector SPDR fund; $103.81 for Industrial Select Sector SPDR fund and $171.46 for Consumer Discretionary Select Sector SPDR fund
|
| Downside threshold: | 75% of initial level
|
| Pricing date: | June 9
|
| Settlement date: | June 14
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
|
| Cusip: | 90278Y820
|
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