UBS to price trigger phoenix autocallables linked to Russell, S&P 500

By Angela McDaniels

Tacoma, Wash., July 24 - UBS AG, London Branch plans to price trigger phoenix autocallable optimization securities due July 31, 2023 linked to the worst performing of the Russell 2000 index and the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If each index closes at or above its coupon barrier - 70% of its initial level - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 6% to 6.5% per year. Otherwise, no coupon will be paid that quarter. The exact contingent coupon rate will be set at pricing.

Beginning one year after issuance, the notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly observation date.

If the notes are not called, the payout at maturity will be par plus the contingent coupon unless either index finishes below its trigger level, in which case investors will be exposed to the decline of the worst-performing index from its initial level. Each index's trigger level is 50% of its initial level.

UBS Financial Services Inc. and UBS Investment Bank are the underwriters.

The notes are expected to price July 29 and settle July 31.

The Cusip number is 90271L528.

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