Published on 6/30/2021 in the Prospect News Structured Products Daily.
New Issue: UBS prices $19.02 million trigger autocallable contingent yield notes on airline stock basket
By Wendy Van Sickle
Columbus, Ohio, June 30 – UBS AG, London Branch priced $19.02 million of trigger autocallable contingent yield notes due March 21, 2024 linked to an equally weighted basket of the common stocks of American Airlines Group Inc., Delta Air Lines, Inc., Spirit Airlines, Inc. and United Airlines Holdings, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 10% if the basket closes at or above its 70% coupon barrier on the related monthly observation date.
The notes will be called at par of $10 plus accrued interest if the basket closes at or above the initial basket level on any monthly observation date after six months.
If the notes are not called, the payout at maturity will be par unless the final price of the basket is less than the 60% downside threshold, in which case investors will be fully exposed to the basket level decline.
UBS Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying stocks: | American Airlines Group Inc., Delta Air Lines, Inc., Spirit Airlines, Inc., United Airlines Holdings, Inc., each with a 25% weight
|
| Amount: | $19,019,000
|
| Maturity: | March 21, 2024
|
| Coupon: | 10% annualized, payable each month that basket closes at or above coupon barrier on observation date for that month
|
| Price: | Par of $10
|
| Payout at maturity: | Par unless final basket level is less than downside threshold, in which case full exposure to losses
|
| Call: | Automatically at par plus accrued interest if basket closes at or above initial share price on any monthly observation date after six months
|
| Initial share price: | $22.29 for American Airlines, $44.96 for Delta, $33.15 for Spirit, $54.92 for United Airlines
|
| Coupon barrier: | 70% of initial level
|
| Downside threshold: | 60% of initial level
|
| Pricing date: | June 18
|
| Settlement date: | June 23
|
| Agents: | UBS Securities LLC and UBS Investment Bank
|
| Fees: | 3%
|
| Cusip: | 90276BN90
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
