Published on 1/10/2019 in the Prospect News Structured Products Daily.
New Issue: UBS sells $3 million trigger callable contingent yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Jan. 10 – UBS AG, London Branch priced $3 million of trigger callable contingent yield notes due Jan. 7, 2020 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Nasdaq-100 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 10% if each index’s closing level remains at or above its coupon barrier, 65% of its initial level, on each day that quarter.
The notes will be callable at par 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, 65% 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 agent with Morgan Stanley Wealth Management handling distribution.
| 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 Nasdaq-100
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| Amount: | $3 million
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| Maturity: | Jan. 7, 2020
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| Coupon: | 10% per year, payable quarterly if 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: | Callable at par on each quarterly observation date
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| Initial index levels: | 6,360.869 for Nasdaq, 2,510.03 for S&P and 1,355.906 for Russell
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| Coupon barriers: | 4,134.565 for Nasdaq, 1,631.52 for S&P and 881.339 for Russell; 65% of initial levels
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| Downside thresholds: | 4,134.565 for Nasdaq, 1,631.52 for S&P and 881.339 for Russell; 65% of initial levels
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| Pricing date: | Jan. 2
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| Settlement date: | Jan. 7
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| Agent: | UBS Financial Services Inc. with Morgan Stanley Wealth Management handling distribution
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| Fees: | 1.25%
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| Cusip: | 90270KWH8
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