Published on 2/12/2024 in the Prospect News Structured Products Daily.
New Issue: UBS sells $3 million trigger autocallable memory yield notes on indexes, ETF
By William Gullotti
Buffalo, N.Y., Feb. 12 – UBS AG, London Branch priced $3 million of trigger autocallable contingent yield notes with memory interest due Oct. 1, 2026 linked to the performance of the Financial Select Sector SPDR Fund, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon at the rate of 10.1% per year if each underlier closes at or above its coupon barrier, 70% of its initial level, on any related observation date. Previously unpaid coupons, if any, will be automatically included whenever a coupon payment is made.
The notes will be automatically called at par plus coupon and any unpaid coupons if each underlier closes at or above its initial level on any monthly call observation date after six months.
If the notes are not called and the final level of each underlier is greater than or equal to the downside threshold level, 70% of the initial level, the payout at maturity will be par plus the final coupon and any previously unpaid coupons.
Otherwise, investors will lose 1% for every 1% that the worst performer declines from its 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 with memory interest
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| Underlying assets: | Financial Select Sector SPDR Fund, Russell 2000 index, S&P 500 index
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| Amount: | $3 million
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| Maturity: | Oct. 1, 2026
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| Coupon: | 10.1% per year, paid monthly, if each underlier closes at or above its coupon barrier on any related observation date; coupon payment events will automatically include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | Par plus final coupon and any previously unpaid coupons if each underlier finishes at or above downside threshold; otherwise, 1% loss for each 1% decline of worst performer from initial level
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| Call: | Automatically at par plus coupon if each underlier closes at or above initial level on any monthly call observation date after six months
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| Initial levels: | $33.24 for ETF, 1,778.903 for Russell, 4,274.51 for S&P
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| Coupon barrier levels: | $23.27 for ETF, 1,245.232 for Russell, 2,992.16 for S&P; 70% of initial levels
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| Downside thresholds: | $23.27 for ETF, 1,245.232 for Russell, 2,992.16 for S&P; 70% of initial levels
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| Pricing date: | Sept. 27, 2023
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| Settlement date: | Oct. 2, 2023
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 0.75%
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| Cusip: | 90279WFP4
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