By William Gullotti
Buffalo, N.Y., June 28 – UBS AG, London Branch priced $5.53 million of trigger autocallable contingent yield notes due June 28, 2028 linked to an equally-weighted basket of four stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the common stocks of Bank of America Corp., JPMorgan Chase & Co., U.S. Bancorp and Wells Fargo & Co.
The notes will pay a contingent monthly coupon at an annualized rate of 9.5% if the basket closes at or above its 75% coupon barrier on the related monthly observation date.
The notes will be called at par plus coupon if the basket closes at or above the initial basket level on any monthly observation date after one year.
If the notes are not called, the payout at maturity will be par plus the final coupon if the basket finishes at or above its coupon barrier.
If the basket finishes below the coupon barrier but at or above the 60% downside threshold, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% of basket decline from the initial level.
UBS Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying stocks: | Bank of America Corp., JPMorgan Chase & Co., U.S. Bancorp, Wells Fargo & Co.; each with a 25% weight
|
| Amount: | $5,528,000
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| Maturity: | June 28, 2028
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| Coupon: | 9.5% annualized, payable monthly if the basket closes at or above coupon barrier on the relevant observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon if basket finishes at or above coupon barrier; if the final basket level is less than the coupon barrier but greater than or equal to downside threshold, par; otherwise, full exposure to basket decline from initial level
|
| Initial share prices: | $27.75 for BofA, $31.88 for U.S. Bancorp, $138.85 for JPMorgan, $40.61 for Wells Fargo
|
| Call: | Automatically at par plus coupon if basket closes at or above initial level on any monthly observation date after one year
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| Coupon barrier: | 75% of initial level
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| Downside threshold: | 60% of initial level
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| Pricing date: | June 23
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| Settlement date: | June 28
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| Agents: | UBS Securities LLC and UBS Investment Bank
|
| Fees: | 3.85%
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| Cusip: | 90279GUT4
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