Published on 1/15/2020 in the Prospect News Structured Products Daily.
New Issue: UBS sells $13.85 million of trigger callable contingent yield notes on indexes
By Sarah Lizee
Olympia, Wash., Jan. 15 – UBS AG, London Branch priced $13.85 million of trigger callable contingent yield notes due Jan. 13, 2022 linked to the worst performing of the Euro Stoxx Banks index, 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 an annual rate of 11.5% if each index’s closing level is at least 60% of its initial level on every trading day during that quarter.
The notes will be callable in whole but not in part on any observation date other than the final one at par plus any coupon.
If the notes are not called and each index closes at or above its 70% trigger level on every trading day during the life of the notes, 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 Securities LLC is the agent, and Morgan Stanley Wealth Management is the dealer.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | Euro Stoxx Banks index, Russell 2000 index and S&P 500 index
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| Amount: | $13,852,000
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| Maturity: | Jan. 13, 2022
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| Coupon: | 11.5% per year, payable quarterly if each index closes at or above its barrier level on every trading day during that quarter
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| Price: | Par
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| Payout at maturity: | If the notes are not called and each index closes at or above its 70% trigger level on every trading day during the life of the notes, par; otherwise, 1% loss for every 1% that the least-performing index’s final level is below its initial level
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| Call option: | At par plus any coupon on any observation other than final date
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| Initial levels: | 1,657.643 for Russell, 3,265.35 for S&P, 97.49 for Stoxx Banks
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| Coupon barrier levels: | 1,160.350 for Russell, 2,285.75 for S&P, 68.24 for Stoxx Banks; 60% of initial levels
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| Trigger levels: | 5,661.23 for Nasdaq, 1,081.698 for Russell, 2,093.84 for S&P; 60% of initial levels
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| Pricing date: | Jan. 10
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| Settlement date: | Jan. 15
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| Agent: | UBS Securities LLC
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 2%
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| Cusip: | 90270K2T5
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