Published on 3/27/2023 in the Prospect News Structured Products Daily.
New Issue: UBS prices $2.5 million trigger autocallable contingent yield notes on three ETFs
By Wendy Van Sickle
Columbus, Ohio, March 27 – UBS AG, London Branch priced $2.5 million of trigger autocallable contingent yield notes due March 22, 2028 linked to the least performing of the SPDR Euro Stoxx 50 ETF, the SPDR S&P 500 ETF Trust and the iShares Russell 2000 ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 11% per year if each ETF closes at or above its coupon barrier, 65% of its initial level, on the related observation date.
The notes will be automatically called at par plus coupon if the shares of each ETF close at or above its initial share price on any quarterly call observation date after six months.
If the notes are not called and the worst performer finishes at or above its downside threshold level, 65% of the initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price of the least performing ETF is less than its initial share price.
UBS Securities LLC 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 ETFs: | SPDR S&P 500 ETF Trust, iShares Russell 2000 ETF, SPDR Euro Stoxx 50 ETF
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Amount: | $2.5 million
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Maturity: | March 22, 2028
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Coupon: | 11% per year, paid quarterly, if each ETF closes at or above its coupon barrier on any related 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 coupon barrier level; if worst performer finishes below coupon barrier but at or above downside threshold level, par; otherwise, 1% loss for each 1% decline of laggard ETF from initial level
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Call: | Automatically at par plus coupon if each ETF closes at or above initial level on any quarterly call observation date after six months
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Initial levels: | $171.23 for Russell, $389.99 for S&P, $41.56 for Stoxx
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Coupon barrier levels: | $111.30 for Russell, $253.49 for S&P, $27.01 for Stoxx; 65% of initial levels
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Downside thresholds: | $111.30 for Russell, $253.49 for S&P, $27.01 for Stoxx; 65% of initial levels
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Pricing date: | March 17
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Settlement date: | March 22
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Agents: | UBS Securities LLC and UBS Investment Bank
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Fees: | 0.25%
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Cusip: | 90279F6X4
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