Published on 12/23/2019 in the Prospect News Structured Products Daily.
New Issue: UBS prices $2.68 million contingent income autocallables linked to ETFs
By Sarah Lizee
Olympia, Wash., Dec. 23 – UBS AG London Branch priced $2.68 million of contingent income autocallable securities due Dec. 4, 2024 linked to the lesser performing of the Financial Select Sector SPDR fund, the Industrial Select Sector SPDR fund and the Consumer Staples Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 8.5% per year if each ETF closes at or above its trigger level, 70% of its initial share price, on the determination date for that quarter.
The notes will be automatically called at par if each ETF closes at or above its initial share price on any quarterly determination date other than the final one.
The payout at maturity will be par unless either ETF finishes below its trigger level, 70% of its initial share price, in which case investors will lose 1% for every 1% that the lesser-performing ETF declines.
UBS Securities LLC is the agent. Morgan Stanley Wealth Management is the dealer.
| Issuer: | UBS AG London Branch
|
| Issue: | Contingent income autocallable securities
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| Underlying ETFs: | Financial Select Sector SPDR fund, Industrial Select Sector SPDR fund and Consumer Staples Select Sector SPDR fund
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| Amount: | $2,675,000
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| Maturity: | Dec. 4, 2024
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| Coupon: | 8.5% per year, payable quarterly if each ETF closes at or above trigger level on determination date for that quarter.
|
| Price: | Par
|
| Payout at maturity: | Par unless either ETF finishes below trigger level, in which case 1% loss for every 1% that lesser-performing ETF declines
|
| Call: | Automatically at par if each ETF closes at or above initial share price on any quarterly determination date other than the final one
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| Initial share prices: | $30.15 for financial, $82.04 for industrial, $62.00 for consumer staples
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| Trigger level: | $21.11 for financial, $57.43 for industrial, $43.40 for consumer staples, or 70% of initial share prices
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| Pricing date: | Nov. 29
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| Settlement date: | Dec. 4
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| Agent: | UBS Securities LLC
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 2.5%
|
| Cusip: | 90281F446
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