Published on 3/21/2024 in the Prospect News Structured Products Daily.
New Issue: UBS prices $9 million trigger callable contingent yield securities on Dow, Russell, S&P
By William Gullotti
Buffalo, N.Y., March 21 – UBS AG, London Branch priced $9 million of trigger callable contingent yield securities due June 20, 2025 linked to the performance 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.
The notes will pay a quarterly contingent coupon at an annual rate of 9.8% if each index’s closing level is at least 70% of its initial level on the corresponding observation date.
The notes will be callable at par on any quarterly observation date.
If the notes are not called and each index finishes at or above its 70% coupon barrier, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon barrier but at or above its 65% trigger level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the worst performer’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 index, S&P 500 index
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| Amount: | $9 million
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| Maturity: | June 20, 2025
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| Coupon: | 9.8% per year, payable quarterly if each index closes at or above its coupon barrier on the relevant observation date
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| Price: | Par
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| Payout at maturity: | Par plus the final coupon if each index finishes at or above coupon barrier level; if worst performer finishes below coupon barrier but at or above trigger level, par; otherwise, full exposure to the decline of the worst performing index from initial level
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| Call option: | At par on any quarterly observation date
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| Initial levels: | 38,905.66 for Dow, 2,031.175 for Russell, 5,150.48 for S&P
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| Coupon barrier levels: | 27,233.96 for Dow, 1,421.823 for Russell, 3,605.34 for S&P; 70% of initial levels
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| Trigger levels: | 25,288.68 for Dow, 1,320.264 for Russell, 3,347.81 for S&P; 65% of initial levels
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| Strike date: | March 14
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| Pricing date: | March 15
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| Settlement date: | March 19
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | None
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| Cusip: | 902674W55
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