Published on 6/23/2020 in the Prospect News Structured Products Daily.
New Issue: UBS sells $14.15 million trigger callable contingent yield notes on indexes
By Sarah Lizee
Olympia, Wash., June 23 – UBS AG, London Branch priced $14.15 million trigger callable contingent yield notes with daily coupon observation due Sept. 22, 2022 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 12% per year if each index’s closing level is at or above its coupon barrier level, 65% of its initial level, on each day during that quarter.
The notes will be callable at par plus any coupon on each quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its 50% 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 with daily coupon observation
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| Underlying indexes: | S&P 500, Nasdaq-100, Russell 2000
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| Amount: | $14,147,000
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| Maturity: | Sept. 22, 2022
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| Coupon: | 12% per year, payable each quarter that each index closes at or above its coupon barrier on each day that quarter
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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 quarterly observation date
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| Initial levels: | 9,949.366 for Nasdaq, 1,452.26 for Russell, 3,124.74 for S&P
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| Coupon barriers: | 6,467.088 for Nasdaq, 943.969 for Russell, 2,031.08 for S&P; 65% of initial levels
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| Downside thresholds: | 4,974.683 for Nasdaq, 726.13 for Russell, 1,562.37 for S&P; 50% of initial levels
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| Pricing date: | June 16
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| Settlement date: | June 19
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 1.25%
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| Cusip: | 90281K338
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