By Sarah Lizee
Olympia, Wash., May 1 – UBS AG, London Branch priced $4.25 million of contingent income autocallable securities due April 27, 2023 linked to the common stocks of Home Depot, Inc. and Lowe’s Cos., Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If the least performing shares close at or above the coupon barrier level, 65% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 23%.
The notes will be called at par of $10 plus the contingent coupon if the least performing shares close at or above the initial share price on any quarterly determination date other than the final determination date.
If the final share price of the least performing stock is greater than or equal to the 65% downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price of the least performing stock is less than the initial share price.
UBS Securities LLC is the agent. Morgan Stanley Wealth Management is the dealer.
Issuer: | UBS AG, London Branch
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Issue: | Contingent income autocallable securities
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Underlying stocks: | Home Depot, Inc. and Lowe’s Cos., Inc.
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Amount: | $4.25 million
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Maturity: | April 27, 2023
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Coupon: | 23% per year, payable quarterly if least performing shares close at or above coupon barrier level on determination date for that quarter
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Price: | Par of $10.00
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Payout at maturity: | If final share price of the least performing stock is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price of the least performing stock is less than initial share price
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Call: | At par plus contingent coupon if least performing shares close at or above initial share price on any quarterly determination date other than final determination date
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Initial share prices: | $212.18 for Home Depot, $98.75 for Lowe’s
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Coupon barriers/downside thresholds: | $137.92 for Home Depot, $64.19 for Lowe’s; 65% of initial share price
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Pricing date: | April 24
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Settlement date: | April 29
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Agent: | UBS Securities LLC
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Dealer: | Morgan Stanley Wealth Management
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Fees: | 2.5%
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Cusip: | 90281J505
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