By William Gullotti
Buffalo, N.Y., Oct. 1 – UBS AG, London Branch priced $2.3 million of trigger autocallable contingent yield notes due Sept. 29, 2026 linked to an equally weighted basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the common stocks of Alaska Air Group, Inc., Southwest Airlines Co., Delta Air Lines, Inc. and United Airlines Holdings, Inc.
The notes will pay a contingent monthly coupon at an annualized rate of 7.5% if the basket closes at or above its 70% coupon barrier on the related monthly observation date.
The notes will be called at par plus coupon if the basket closes at or above the initial basket level on any monthly observation date after one year.
If the notes are not called, the payout at maturity will be par plus the final coupon if the basket finishes above the coupon barrier.
If the basket finishes below the coupon barrier but at or above the 60% downside threshold, the payout at maturity will be par. Otherwise, investors will be fully exposed to the basket’s decline from its initial level.
UBS Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying stocks: | Alaska Air Group, Inc., Southwest Airlines Co., Delta Air Lines, Inc., United Airlines Holdings, Inc.; each with a 25% weight
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| Amount: | $2.3 million
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| Maturity: | Sept. 29, 2026
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| Coupon: | 7.5% annualized, payable monthly that the basket closes at or above coupon barrier on the relevant observation date
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| Price: | Par
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| Payout at maturity: | If basket finishes at or above coupon barrier, par plus final coupon; if the basket lags below coupon barrier but finishes at or above downside threshold, par; otherwise, lose 1% for every 1% decline from initial level
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| Initial share prices: | $60.79 for Alaska, $43.53 for Delta, $52.85 for Southwest, $48.79 for United
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| Call: | Automatically at par plus coupon if basket closes at or above initial share price on any monthly observation date after one year
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| Coupon barrier: | 70% of initial level
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| Downside threshold: | 60% of initial level
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| Pricing date: | Sept. 24
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| Settlement date: | Sept. 29
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 3.75%
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| Cusip: | 90279DHK5
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