By Emma Trincal
New York, Sept. 27 – UBS AG London Branch priced $6,875,000 of 0% outperformance jump securities due Oct. 4, 2023 linked to the relative performance of two baskets of ETFs, according to a 424B2 filing with the Securities and Exchange Commission. Each basket is composed of two equally-weighted ETFs.
The “long basket” consists of the Utilities Select Sector SPDR fund and the Health Care Select Sector SPDR fund. The “short basket” consists of the Technology Select Sector SPDR fund and the Consumer Discretionary Select Sector SPDR fund. The funds are equally weighted in each basket.
If the long basket return is greater than or equal to the short basket return, the payout at maturity will be par of $10 plus 15.50%.
If the long basket return is less than the short basket return, the payout at maturity will be equal to the outperformance return, which is the long basket return minus the short basket return. In this case, the payout will be less than par.
UBS Securities LLC is the agent and Morgan Stanley Wealth Management is the dealer.
| Issuer: | UBS AG, London Branch
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| Issue: | Outperformance jump securities
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| Underlying baskets: | Utilities Select Sector SPDR fund and the Health Care Select Sector SPDR fund; Technology Select Sector SPDR fund and the Consumer Discretionary Select Sector SPDR fund
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| Amount: | $6,875,000
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| Maturity: | Oct. 4, 2023
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | Digital return of 15.5% if the long basket return is greater than or equal to the short basket return; otherwise, long basket return minus the short basket return
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| Initial levels: | $72.60 for utilities, $123.36 for healthcare, $125.38 for technology and $149.87 for consumer discretionary
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| Pricing date: | Sept. 22
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| Settlement date: | Sept. 27
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| Agents: | UBS Securities LLC
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 2.25%
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| Cusip: | 90289V294
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