Published on 10/9/2023 in the Prospect News Structured Products Daily.
New Issue: UBS prices $965,000 airbag callable contingent yield notes on ETFs
By Kiku Steinfeld
Chicago, Oct. 9 – UBS AG, London Branch priced $965,000 of airbag callable contingent yield notes due March 27, 2025 linked to the least performing of SPDR S&P 500 ETF Trust, iShares MSCI EAFE ETF and iShares Russell 2000 ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly at an annualized rate of 10% if the least-performing asset closes at or above its coupon barrier, 75% of the initial level, on the related observation date.
The notes will be callable at par plus any coupon otherwise due on any monthly observation date after nine months.
The payout at maturity will be par plus the final coupon unless the final level of the least performing asset is less than the downside threshold, 75% of the initial level, in which case investors will lose 1.3333% for each 1% loss of the least-performing asset beyond the downside threshold.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Airbag callable contingent yield notes
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| Underlying assets: | SPDR S&P 500 ETF Trust, iShares MSCI EAFE ETF and iShares Russell 2000 ETF
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| Amount: | $965,000
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| Maturity: | March 27, 2025
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| Coupon: | 10%, payable monthly if least-performing asset closes at or above coupon barrier on related observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon unless final level of least-performing asset is less than downside threshold, in which case 1.3333% loss for each 1% loss of least-performing asset beyond downside threshold
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| Call option: | At par plus any coupon otherwise due on any monthly observation date after nine months
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| Initial levels: | $68.82 for EAFE, $171.79 for Russell, $395.75 for S&P
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| Coupon barriers: | $51.62 for EAFE, $128.84 for Russell, $296.81 for S&P; 75% of initial levels
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| Downside thresholds: | $51.62 for EAFE, $128.84 for Russell, $296.81 for S&P; 75% of initial levels
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| Pricing date: | March 24, 2023
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| Settlement date: | March 29, 2023
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 0.6%
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| Cusip: | 90279F7L9
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