UBS plans trigger phoenix autocallables tied to MSCI EM, Russell 2000

By Angela McDaniels

Tacoma, Wash., April 30 – UBS AG, London Branch plans to price trigger phoenix autocallable optimization securities due May 21, 2025 linked to the least performing of the MSCI Emerging Markets index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter. The contingent coupon rate is expected to be 8% to 8.5% per year and will be set at pricing.

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

If the notes are not called and each index finishes at or above its 50% trigger level, the payout at maturity will be par plus the final contingent coupon, if any. Otherwise, investors will be fully exposed to the decline of the least-performing index.

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

The notes are expected to price May 15 and settle May 20.

The Cusip number is 90274T296.

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