Published on 4/16/2020 in the Prospect News Structured Products Daily.
New Issue: UBS sells $613,000 trigger callable contingent yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, April 16 – UBS AG, London Branch priced $613,000 of trigger callable contingent yield notes due April 14, 2025 linked to the least performing of the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Each six months, the notes will pay a contingent coupon at the rate of 11.75% per year if each index’s closing level is at or above its coupon barrier level, 70% of its initial level, on the observation date for that period.
The notes will be callable at par plus any coupon on each observation date after one year.
If the notes are not called and each index finishes at or above its 70% downside threshold, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger callable contingent yield securities
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| Underlying indexes: | Dow Jones industrial average, Russell 2000
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| Amount: | $613,000
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| Maturity: | April 14, 2025
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| Coupon: | 11.75% per year, payable each six months that each index closes at or above its coupon barrier on observation date that period
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| 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’s final level is below initial level
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| Call option: | At par plus any coupon on any observation date after one year
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| Initial levels: | 23,719.37 for Dow, 1,246.726 for Russell
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| Coupon barriers: | 16,603.56 for Dow, 872.708 for Russell; 70% of initial levels
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| Downside thresholds: | 16,603.56 for Dow, 872.708 for Russell; 70% of initial levels
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| Pricing date: | April 9
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| Settlement date: | April 16
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2%
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| Cusip: | 90276BAV5
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