By Wendy Van Sickle
Columbus, Ohio, Dec. 10 – UBS AG, London Branch priced $7.53 million of trigger autocallable contingent yield notes due Dec. 11, 2023 linked to an equally weighted basket of two exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Energy Select Sector SPDR fund and Financial Select Sector SPDR fund
The notes will pay a contingent quarterly coupon at an annualized rate of 9.6% if the basket closes at or above its 75% coupon barrier on the related quarterly observation date.
The notes will be called at par plus the coupon if the basket closes at or above the initial basket level on any quarterly observation date.
If the notes are not called, the payout at maturity will be par plus the final coupon if the basket finishes at or above the 75% downside threshold. Otherwise, investors will lose 1% for every 1% decline of the basket from initial level.
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 ETFs: | Energy Select Sector SPDR fund, Financial Select Sector SPDR fund; each with a 50% weight
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| Amount: | $7,525,000
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| Maturity: | Dec. 11, 2023
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| Coupon: | 9.6% annualized, payable each quarter that basket closes at or above coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus final coupon if final basket level is greater than or equal to downside threshold; otherwise, full exposure to losses
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| Call: | Automatically at par plus coupon if basket closes at or above initial level on any quarterly observation date
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| Initial share prices: | $55.96 for Energy, $38.61 for Financial
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| Coupon barrier: | 75% of initial level
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| Downside threshold: | 75% of initial level
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| Pricing date: | Dec. 7
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| Settlement date: | Dec. 10
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 1.5%
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| Cusip: | 90279D330
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