By Marisa Wong
Madison, Wis., Jan. 14 – UBS AG, London Branch priced $1.55 million trigger phoenix callable optimization securities due Jan. 15, 2025 linked to 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 contingent quarterly coupon at an annual rate of 9.76% if each index finishes at or above its coupon barrier, 70% of its initial level, on an observation date for that quarter.
A trigger event will occur if either index finishes below its 50% trigger level.
If each index finishes at or above its coupon barrier, the payout at maturity will be par plus the coupon.
If each index finishes below its coupon barrier but at or above the trigger level, the payout will be par.
Otherwise, investors will be fully exposed to any losses of the worse performing index.
The notes are callable at par plus the coupon on any quarterly observation date.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger phoenix callable optimization securities
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| Underlying indexes: | Russell 2000 and S&P 500
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| Amount: | $1.55 million
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| Maturity: | Jan. 15, 2025
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| Coupon: | 9.76% per year, payable quarterly if each index closes at or above their coupon barriers on observation date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | If each index gains or falls by up to 30%, par plus coupon; if each index falls by up to 50%, par; otherwise, full exposure to any losses of worse performing index
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| Call option: | At par plus contingent coupon on any quarterly observation date
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| Initial index levels: | 1,196.121 for Russell and 2,062.14 for S&P
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| Coupon barriers: | 837.285 for Russell and 1,443.50 for S&P, 70% of initial levels
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| Trigger levels: | 598.061 for Russell and 1,031.07 for S&P, 50% of initial levels
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| Pricing date: | Jan. 8
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| Settlement date: | Jan. 15
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2%
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| Cusip: | 90274F643
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