Published on 2/11/2020 in the Prospect News Structured Products Daily.
New Issue: UBS sells $530,000 trigger callable step-up contingent yield notes on Nasdaq, Russell
By Sarah Lizee
Olympia, Wash., Feb. 11 – UBS AG, London Branch priced $530,000 of trigger callable step-up contingent yield notes due Feb. 2, 2023 linked to the least performing of the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon if each index closes at or above its coupon barrier, 70% of its initial level, on the related observation date. The contingent coupon’s annual rate is 5% initially, stepping up to 10% on Nov. 2, 2021.
The notes are callable at par plus any coupon due on any quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its downside threshold, 70% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index finishes below its initial level.
UBS Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger callable step-up contingent yield notes
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| Underlying indexes: | Nasdaq-100, Russell 2000
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| Amount: | $530,000
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| Maturity: | Feb. 2, 2023
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| Coupon: | Initially 5% initially, stepping up to 10% on Nov. 2, 2021; payable quarterly if each index closes at or above coupon barrier on related observation date
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for every 1% that least-performing index finishes below threshold level
|
| Call option: | At par plus any coupon due on any quarterly observation date other than the final one
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| Initial levels: | 9,090.933 for Nasdaq, 1,658.314 for Russell
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| Coupon barriers: | 6,363.653 for Nasdaq, 1,160.82 for Russell; 70% of initial levels
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| Downside thresholds: | 6,363.653 for Nasdaq, 1,160.82 for Russell; 70% of initial levels
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| Pricing date: | Jan. 28
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| Settlement date: | Jan. 31
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 2.5%
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| Cusip: | 90270K2B4
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