Published on 9/9/2022 in the Prospect News Structured Products Daily.
New Issue: UBS prices $5.52 million floating-rate trigger callable contingent yield notes on index, ETF
By Wendy Van Sickle
Columbus, Ohio, Sept. 9 – UBS AG, London Branch priced $5.52 million of floating-rate trigger callable contingent yield notes due Sept. 4, 2026 linked to the least performing of the Financial Select Sector SPDR fund and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon if each asset’s closing level is at or above its coupon barrier, 60% of its initial level, on the observation date that quarter. The contingent coupon rate is SOFR plus 660 basis points per year subject to a floor of zero.
After six months, the notes are callable at par on any quarterly observation date other than the final one.
If the notes are not called and each asset finishes at or above its downside threshold, 60% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing asset’s final level is below its initial level.
UBS Securities LLC 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 assets: | S&P 500 index, Financial Select Sector SPDR fund
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Amount: | $5.52 million
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Maturity: | Sept. 4, 2026
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Coupon: | SOFR plus 660 bps per year, payable quarterly if each asset closes at or above its coupon barrier on observation date that quarter; floor of zero
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Price: | Par
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Payout at maturity: | If each asset finishes at or above downside threshold, par; otherwise, 1% loss for every 1% that least-performing asset’s final level is below initial level
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Call option: | After six months at par on any quarterly observation date other than final one
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Initial levels: | 3,965.85 for S&P, $33.15 for ETF
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Coupon barriers: | 2,380.11 for S&P, $19.89 for ETF; 60% of initial levels
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Downside thresholds: | 2,380.11 for S&P, $19.89 for ETF; 60% of initial levels
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Pricing date: | Sept. 1
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Settlement date: | Sept. 7
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Agents: | UBS Securities LLC and UBS Investment Bank
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Fees: | 0.25%
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Cusip: | 90279FSX0
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