Published on 5/15/2023 in the Prospect News Structured Products Daily.
New Issue: UBS sells $500,000 trigger autocallable contingent notes with memory on three indexes
By Kiku Steinfeld
Chicago, May 15 – UBS AG, London Branch priced $500,000 of trigger autocallable contingent yield notes with memory interest due Jan. 15, 2026 linked to the performance of the Russell 2000 index, the Dow Jones industrial average and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon at the rate of 8.1% per year if each index closes at or above its coupon barrier, 60% of its initial level, on any related observation date. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be automatically called at par plus coupon if each index closes at or above its initial level on any monthly observation date after one year.
If the notes are not called and each index finishes at or above its downside threshold level, 60% of the initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the worst performer declines from its initial level.
UBS Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger autocallable contingent yield notes with memory interest
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| Underlying indexes: | Russell 2000 index, Dow Jones industrial average, S&P 500 index
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| Amount: | $500,000
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| Maturity: | Jan. 15, 2026
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| Coupon: | 8.1% per year, paid monthly, if each index closes at or above its coupon barrier on any related observation date; coupon payments will automatically include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par; otherwise, 1% loss for each 1% decline of laggard index from initial level
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| Call: | Automatically at par plus coupon if each index closes at or above initial level on any monthly observation date after one year
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| Initial levels: | 1,876.064 for Russell, 34,189.97 for Dow, 3,983.17 for S&P
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| Coupon barrier levels: | 1,125.638 for Russell, 20,513.98 for Dow, 2,389.90 for S&P; 60% of initial levels
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| Downside thresholds: | 1,125.638 for Russell, 20,513.98 for Dow, 2,389.90 for S&P; 60% of initial levels
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| Pricing date: | Jan. 12, 2023
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| Settlement date: | Jan. 18, 2023
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 0.25%
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| Cusip: | 90279FQ87
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