UBS plans contingent income autocallables linked to three indexes

By Marisa Wong

Madison, Wis., Aug. 20 – UBS AG, London Branch plans to price contingent income autocallable securities due Sept. 2, 2021 linked to the worst performing of the Euro Stoxx Banks index, the Russell 2000 index and the Topix index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 9% if each index closes at or above its 65% coupon barrier level on a determination date for that quarter. The exact coupon will be set at pricing.

If all of the indexes close at or above their respective initial levels on any quarterly determination date other than the final determination date, the notes will be redeemed at par plus the contingent coupon.

If the notes are not called, the payout at maturity will be par plus the final contingent coupon unless any index finishes below its 65% downside threshold level, in which case investors will be fully exposed to the decline of the worst-performing index.

UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC will handle distribution.

The notes will price around Aug. 28 and settle around Sept. 3.

The Cusip number is 90273L344.

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