Published on 5/11/2023 in the Prospect News Structured Products Daily.
New Issue: UBS sells $950,000 trigger autocallable contingent yield notes on basket of airline stocks
Chicago, May 11 – UBS AG, London Branch priced $950,000 of trigger autocallable contingent yield notes due June 21, 2027 linked to an equally weighted basket of four airline stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the stocks of Alaska Air Group, Inc., Delta Air Lines, Inc., Southwest Airlines Co. and United Airlines Holdings, Inc.
The notes will pay a contingent monthly coupon at an annualized rate of 10.55% if the basket closes at or above its 60% coupon barrier on the related 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 unless the final level of the basket is less than the 60% downside threshold, in which case investors will be fully exposed to the basket 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 funds: | Alaska Air Group, Inc., Delta Air Lines, Inc., Southwest Airlines Co. and United Airlines Holdings, Inc.; equal weights
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| Amount: | $950,000
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| Maturity: | June 21, 2027
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| Coupon: | 10.55% annualized, payable each month that basket closes at or above coupon barrier on observation date for that period
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| Price: | Par
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| Payout at maturity: | Par plus final coupon unless final basket level is less than downside threshold, in which case full exposure to losses
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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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| Initial share prices: | $41.18 for Alaska, $31.96 for Delta, $37.23 for Southwest, $37.89 for United
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| Coupon barrier: | 60% of initial level
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| Downside threshold: | 60% of initial level
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| Pricing date: | June 15, 2022
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| Settlement date: | June 21, 2022
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 3.85%
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| Cusip: | 90279FGN5
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