By Marisa Wong
Morgantown, W.Va., May 18 – UBS AG, London Branch priced $6.37 million of 0% trigger autocallable contingent yield notes due May 19, 2026 linked to the lesser performing of 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 will pay a contingent coupon at the rate of 7.3% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter.
After one year, the notes will be automatically called at par of $10 if each index closes at or above its initial level on any quarterly observation date.
If the notes are not called and the final level of the lesser-performing index is greater than or equal to its 50% downside threshold, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the lesser-performing index’s final level is less than its initial level.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | Russell 2000 and S&P 500
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| Amount: | $6.37 million
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| Maturity: | May 19, 2026
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| Coupon: | 7.3% per year, payable quarterly if each index closes at or above coupon barrier level on observation day for that quarter
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| Price: | Par of $10
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| Payout at maturity: | If final level of lesser-performing index is greater than or equal to downside threshold, par; otherwise, 1% loss for every 1% that lesser-performing index’s final level is less than initial level
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| Call: | After one year, notes will be automatically called at par if each index closes at or above initial level on any quarterly observation date
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| Initial levels: | 1,102.439 for Russell 2000 and 2,046.61 for S&P 500
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| Coupon barriers: | 771.707 for Russell 2000 and 1,432.63 for S&P 500; 70% of initial levels
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| Downside thresholds: | 551.220 for Russell 2000 and 1,023.31 for S&P 500; 50% of initial levels
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| Pricing date: | May 13
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| Settlement date: | May 18
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 3.5%
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| Cusip: | 90275R505
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