Published on 9/19/2023 in the Prospect News Structured Products Daily.
New Issue: UBS prices $3.02 million trigger callable contingent yield notes on three ETFs
By William Gullotti
Buffalo, N.Y., Sept. 19 – UBS AG, London Branch priced $3.02 million of trigger callable contingent yield notes due Sept. 18, 2028 linked to the worst performing of the iShares Russell 2000 ETF, the SPDR S&P 500 ETF Trust and the Technology Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 9.3% if each ETF’s closing level is at least 60% of its initial level on the relevant observation date.
The notes will be callable at par plus any coupon due on any monthly observation date after one year.
If the notes are not called and each ETF finishes at or above its 60% trigger level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1% for every 1% that the worst performer’s final level is below its initial level.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger callable contingent yield notes
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| Underlying funds: | iShares Russell 2000 ETF, SPDR S&P 500 ETF Trust, Technology Select Sector SPDR Fund
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| Amount: | $3,023,000
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| Maturity: | Sept. 18, 2028
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| Coupon: | 9.3% per year, payable monthly if each ETF closes at or above its coupon barrier level on the corresponding observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon if each ETF finishes at or above trigger level; otherwise, full exposure to the decline of the worst performing ETF from its initial level
|
| Call option: | At par plus any coupon due on any monthly observation date after one year
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| Initial levels: | $182.97 for iShares, $446.51 for S&P ETF, $170.97 for Technology
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| Coupon barrier levels: | $109.78 for iShares, $267.91 for S&P ETF, $102.58 for Technology; 60% of initial levels
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| Trigger levels: | $109.78 for iShares, $267.91 for S&P ETF, $102.58 for Technology; 60% of initial levels
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| Pricing date: | Sept. 13
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| Settlement date: | Sept. 18
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 0.25%
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| Cusip: | 90279WBJ2
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