Published on 11/12/2018 in the Prospect News Structured Products Daily.
New Issue: UBS sells $6.4 million trigger callable contingent yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Nov. 12 – UBS AG, London Branch priced $6.4 million of trigger callable contingent yield notes due Nov. 7, 2023 linked to the least performing of the S&P 500 index, the Russell 2000 index and the MSCI EAFE index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 9% if each index’s closing level remains at or above its coupon barrier, 70% of its initial level, on the observation date that quarter.
The notes will be callable at par of $10 on each quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its downside threshold level, 60% 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 Financial Services Inc. is the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger callable contingent yield notes
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| Underlying indexes: | S&P 500, Russell 2000 and MSCI EAFE
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| Amount: | $6.4 million
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| Maturity: | Nov. 7, 2023
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| Coupon: | 9% per year, payable quarterly if each index closes at or above its coupon barrier on the observation date that quarter
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| Price: | Par of $10
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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: | Callable at par on each quarterly observation date
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| Initial index levels: | 2,723.06 for S&P, 1,547.981 for Russell and 1,837.05 for EAFE
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| Coupon barriers: | 1,906.14 for S&P, 1,083.587 for Russell and 1,285.94 for EAFE; 70% of initial levels
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| Downside thresholds: | 1,633.84 for S&P, 928.789 for Russell and 1,102.23 for EAFE; 60% of initial levels
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| Pricing date: | Nov. 2
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| Settlement date: | Nov. 7
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| Agent: | UBS Financial Services Inc.
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| Fees: | 1.75%
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| Cusip: | 22549R839
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