Published on 8/9/2021 in the Prospect News Structured Products Daily.
New Issue: UBS prices $3.95 million trigger callable contingent yield notes on two SPDR ETFs
By William Gullotti
Buffalo, N.Y., Aug. 9 – UBS AG, London Branch priced $3.95 million of trigger callable contingent yield notes due June 14, 2024 linked to the worst performing of the SPDR S&P Regional Banking ETF 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 of 6.75% if each ETF’s closing level is at least 60% of its initial level on the relevant observation date.
The notes will be callable at par on any quarterly observation date after six months.
If the notes are not called and each ETF finishes at or above its 60% trigger level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing ETF’s final level is below its initial level.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
Issuer: | UBS AG, London Branch
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Issue: | Trigger callable contingent yield notes
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Underlying funds: | SPDR S&P Regional Banking ETF, Financial Select Sector SPDR Fund
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Amount: | $3,950,000
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Maturity: | June 14, 2024
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Coupon: | 6.75% per year, payable quarterly if each ETF closes at or above its coupon barrier level on the corresponding observation date
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Price: | Par
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Payout at maturity: | Par unless any ETF finishes below its trigger level, in which case full exposure to the losses of the worst performing ETF
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Call option: | At par on any quarterly observation date after six months
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Initial levels: | $68.60 for Banking, $37.56 for Financial
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Coupon barrier levels: | $41.16 for Banking, $22.54 for Financial; 60% of initial levels
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Trigger levels: | $41.16 for Banking, $22.54 for Financial; 60% of initial levels
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Pricing date: | June 11
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Settlement date: | June 16
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Agents: | UBS Financial Services Inc. and UBS Investment Bank
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Fees: | None
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Cusip: | 90276BQ89
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