Published on 1/19/2024 in the Prospect News Structured Products Daily.
New Issue: UBS prices $10.79 million contingent income autocalls tied to three SPDR ETFs
By Wendy Van Sickle
Columbus, Ohio, Jan. 19 – UBS AG, London Branch priced $10.79 million of contingent income autocallable securities due Jan. 15, 2026 linked to the performance of the Financial Select Sector SPDR Fund, the Energy Select Sector SPDR Fund and the Utilities Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 10% if each ETF closes at or above its 65% coupon barrier on the corresponding observation date.
The notes will be called at par plus the contingent coupon if each ETF closes at or above initial level on any quarterly determination date after six months.
If all ETFs finish at or above the coupon barrier, the payout at maturity will be will be par plus the final coupon.
Otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level.
UBS Securities LLC is the agent and Morgan Stanley Wealth Management is the dealer.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
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| Underlying funds: | Financial Select Sector SPDR Fund, Energy Select Sector SPDR Fund, Utilities Select Sector SPDR Fund
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| Amount: | $10,789,000
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| Maturity: | Jan. 15, 2026
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| Coupon: | 10% per year, payable quarterly if all ETFs close at or above coupon barrier level on the relevant observation date
|
| Price: | Par
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| Payout at maturity: | Par plus final coupon if each ETF finishes at or above coupon barrier; otherwise, full exposure to decline of the worst performer from its initial level
|
| Call: | At par plus contingent coupon if all ETFs close at or above initial level on any quarterly determination date after six months
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| Initial levels: | $37.60 for Financial, $82.68 for Energy, $63.32 for Utilities
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| Coupon barriers: | $24.44 for Financial, $53.74 for Energy, $41.16 for Utilities; 65% of initial level
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| Downside thresholds: | $24.44 for Financial, $53.74 for Energy, $41.16 for Utilities; 65% of initial level
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| Pricing date: | Jan. 12
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| Settlement date: | Jan. 18
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| Agent: | UBS Securities LLC
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| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 2%
|
| Cusip: | 90279WZZ0
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