Published on 8/8/2019 in the Prospect News Structured Products Daily.
New Issue: UBS sells $3.05 million contingent income autocallables tied to three ETFs
By Sarah Lizee
Olympia, Wash., Aug. 8 – UBS AG London Branch priced $3.05 million of contingent income autocallable securities with daily coupon observation and six-month initial non-call period due Nov. 3, 2021 linked to the worst performing of the Consumer Staples Select Sector SPDR fund, the Utilities Select Sector SPDR fund and the Health Care Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.25% if each underlying asset closes at or above its 75% coupon barrier on the related observation date for that quarter.
The notes will be called at par plus the coupon if each ETF closes at or above its initial level on any observation end date other than the first and final ones.
The payout at maturity will be par plus any coupon unless any underlying asset finishes below its 75% threshold level, in which case investors will be fully exposed to any losses of the worst performing ETF.
UBS Securities LLC is the agent with Morgan Stanley Wealth Management as a dealer.
Issuer: | UBS AG London Branch
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Issue: | Contingent income autocallable securities with daily coupon observation
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Underlying assets: | Consumer Staples Select Sector SPDR fund, the Utilities Select Sector SPDR fund and the Health Care Select Sector SPDR fund
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Amount: | $3.05 million
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Maturity: | Nov. 3, 2021
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Coupon: | 8.25% annualized, payable quarterly if each asset closes at or above its 75% coupon barrier on the related observation date for that quarter
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Price: | Par
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Payout at maturity: | If each asset finishes at or above threshold level, par; otherwise, 1% loss for each 1% decline of worst performing ETF
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Call: | At par if each component closes at or above its initial level on any quarterly observation period end date other than the first and final ones
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Initial levels: | $59.43 for Consumer, $59.55 for Utilities, $91.14 for Health
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Coupon barrier levels: | $44.57 for Consumer, $44.66 for Utilities, $68.36 for Health, 75% of initial levels
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Downside threshold levels: | $44.57 for Consumer, $44.66 for Utilities, $68.36 for Health, 75% of initial levels
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Pricing date: | July 31
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Settlement date: | Aug. 5
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Underwriter: | UBS Securities LLC
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Dealer: | Morgan Stanley Wealth Management
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Fees: | 2.5%
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Cusip: | 90281D763
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