By Marisa Wong
Morgantown, W.Va., March 13 – UBS AG, London Branch priced $8.12 million of trigger autocallable contingent yield notes due March 15, 2022 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 9.6% per year if the fund closes at or above the coupon barrier, 70% of the initial price, on the observation date for that month.
After one year, the notes will be automatically called at par of $10 if the fund closes at or above the initial level on any monthly observation date other than the final one.
If the notes are not called and the final price is greater than or equal to the 70% downside threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final price is less than the initial price.
UBS Financial Services Inc. 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 ETF: | SPDR S&P Oil & Gas Exploration & Production ETF
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Amount: | $8,117,000
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Maturity: | March 15, 2022
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Contingent coupon: | 9.6%, payable monthly if fund closes at or above coupon barrier on monthly observation date
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Price: | Par of $10
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Payout at maturity: | Par unless fund finishes below downside threshold level, in which case 1% loss for each 1% decline from initial level
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Call: | After one year, automatically at par if fund closes at or above initial level on any monthly observation date other than the final one
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Initial price: | $36.20
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Coupon barrier: | $25.34, 70% of initial price
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Downside threshold: | $25.34, 70% of initial price
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Pricing date: | March 9
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Settlement date: | March 14
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Agents: | UBS Financial Services Inc. and UBS Investment Bank
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Fees: | 2.5%
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Cusip: | 90280M772
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