Published on 6/12/2023 in the Prospect News Structured Products Daily.
New Issue: UBS prices $32.32 million airbag yield notes tied to indexes
By Wendy Van Sickle
Columbus, Ohio, June 12 – UBS AG, London Branch priced $32.32 million of airbag yield notes due Dec. 13, 2023 linked to the least performing of the Dow Jones industrial average, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Variable interest is payable on Sept. 13, 2023 and on the final valuation date.
If each index is greater than or equal to its initial level on the observation date, investors will receive the maximum coupon rate of 7.75% per annum. Otherwise, a minimum coupon rate of 4.5% per annum will be paid.
If the final level of each index is greater than or equal to 70% of its initial level, the payout at maturity will be par plus the last coupon payment, if applicable. Otherwise, investors will lose 1.4286% for every 1% decline beyond 30%.
UBS Securities LLC and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
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| Issue: | Airbag yield notes
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index, and S&P 500 index
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| Amount: | $32,319,000
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| Maturity: | Dec. 13, 2023
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| Coupon: | Either 7.75% annualized maximum coupon if all indexes close above initial levels or 4.5% annualized minimum coupon if any index closes below initial level, payable on Sept. 8, 2023 and maturity date
|
| Price: | Par
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| Payout at maturity: | If the final level of the lesser performing index is greater than or equal to the downside threshold, par plus any coupon due; otherwise, investors will lose 1.4286% for every 1% decline of the lesser performing index beyond 30%
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| Initial levels: | 33,833.61 for Dow, 1,880.779 for Russell, 4,293.93 for S&P
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| Downside thresholds: | 23,683.53 for Dow, 1,316.545 for Russell, 3,005.75 for S&P; 70% of initial levels
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| Pricing date: | June 8
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| Settlement date: | June 15
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| Underwriters: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 0.2%
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| Cusip: | 90279GNE5
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