By William Gullotti
Buffalo, N.Y., Feb. 26 – UBS AG, London Branch priced $2.16 million of trigger callable contingent yield notes due Feb. 25, 2027 linked to the worst performing of the Energy Select Sector SPDR Fund, the Financial 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 contingent monthly coupon at an annual rate of 12.1% if each ETF’s closing level is at least 70% of its initial level on the relevant observation date.
The notes will be callable at par plus any coupon due on any monthly observation date after one year.
If the notes are not called and each ETF finishes at or above its 70% trigger level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1% for every 1% that the worst performer’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: | Energy Select Sector SPDR Fund, Financial Select Sector SPDR Fund, Utilities Select Sector SPDR Fund
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| Amount: | $2.16 million
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| Maturity: | Feb. 25, 2027
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| Coupon: | 12.1% per year, payable monthly 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 plus final coupon if each ETF finishes at or above trigger level; otherwise, full exposure to the decline of the worst performing ETF from its initial level
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| Call option: | At par plus any coupon due on any monthly observation date after one year
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| Initial levels: | $86.38 for Energy, $39.64 for Financial, $62.00 for Utilities
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| Coupon barrier levels: | $60.47 for Energy, $27.75 for Financial, $43.40 for Utilities; 70% of initial levels
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| Trigger levels: | $60.47 for Energy, $27.75 for Financial, $43.40 for Utilities; 70% of initial levels
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| Pricing date: | Feb. 21
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| Settlement date: | Feb. 26
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 0.75%
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| Cusip: | 90279W5N0
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