Published on 7/30/2021 in the Prospect News Structured Products Daily.
New Issue: UBS sells $2 million trigger autocallable contingent yield notes with memory on stocks
By William Gullotti
Buffalo, N.Y., July 30 – UBS AG, London Branch priced $2 million of trigger autocallable contingent yield notes with memory interest due June 7, 2024 linked to the least performing of the common stocks of Ford Motor Co., General Motors Co. and Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a coupon at the rate of 14.5% per year if each stock closes at or above its coupon barrier, 50% of its initial level, on any related observation date. Any unpaid coupons will also be paid.
The notes will be automatically called at par plus coupon if the shares of each stock close at or above its initial share price on any quarterly call observation date after six months.
If the notes are not called and the final share price of each stock is greater than or equal to the downside threshold level, 50% of the initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price of the least performing stock is less than its initial share price.
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 stocks: | Ford Motor Co., General Motors Co., Tesla, Inc.
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| Amount: | $1,995,000
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| Maturity: | June 7, 2024
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| Coupon: | 14.5% per year, paid quarterly, if each stock closes at or above its coupon barrier on any related observation date; coupon payments will include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below downside threshold level, in which case 1% loss for each 1% decline of laggard stock from initial level
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| Call: | Automatically at par plus coupon if each stock closes at or above initial level on any quarterly call observation date after six months
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| Initial levels: | $15.97 for Ford, $63.37 for GM, $599.05 for Tesla
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| Coupon barrier levels: | $7.99 for Ford, $31.69 for GM, $299.53 for Tesla; 50% of initial levels
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| Downside thresholds: | $7.99 for Ford, $31.69 for GM, $299.53 for Tesla; 50% of initial levels
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| Pricing date: | June 4
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| Settlement date: | June 9
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 1.5%
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| Cusip: | 90276BM34
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