Published on 10/11/2018 in the Prospect News Structured Products Daily.
New Issue: UBS sells $6.77 million trigger callable contingent yield notes on indexes
By Wendy Van Sickle
Columbus Ohio, Oct. 11 – UBS AG, London Branch priced $6.77 million of trigger callable contingent yield notes with daily coupon observation due Oct. 1, 2021 linked to the least performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon if each index closes at or above its coupon barrier, 70% of its initial level, on each day that quarter. The contingent coupon rate is 6.4% per year.
The notes are callable at par quarterly after six months.
If the notes are not called and each index finishes at or above its downside threshold, 55% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
UBS Securities LLC is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
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| Amount: | $6,771,000
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| Maturity: | Oct. 1, 2021
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| Coupon: | 6.4% per year, payable each quarter that each index closes at or above its coupon barrier on each day that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
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| Call option: | At par quarterly after six months
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| Initial levels: | 1,696.571 for Russell, 2,913.98 for S&P, 3,399.2 for Stoxx
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| Coupon barriers: | 1,187.6 for Russell, 2,039.79 for S&P, 2,379.44 for Stoxx; 70% of initial levels
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| Downside thresholds: | 933.114 for Russell, 1,602.69 for S&P, 1,869.56 for Stoxx; 55% of initial levels
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| Pricing date: | Sept. 28
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| Settlement date: | Oct. 3
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| Agents: | UBS Securities LLC with Morgan Stanley Wealth Management handling distribution
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| Fees: | 2.25%
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| Cusip: | 90270KUG2
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