By William Gullotti
Buffalo, N.Y., Jan. 22 – UBS AG, London Branch priced $6.7 million of trigger autocallable contingent yield notes due Jan. 19, 2029 linked to the least performing of the SPDR S&P 500 ETF Trust and the Energy Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 10.8% per year if each ETF closes at or above its coupon barrier, 70% of its initial level, on any related observation date.
After six months, the notes will be automatically called at par plus the coupon if the shares of each ETF close at or above initial share price on any quarterly call observation date.
If the notes are not called and the final share price of each ETF is greater than or equal to the coupon barrier, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below the coupon barrier but at or above its downside threshold level, 60% of the initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level.
UBS Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable contingent yield notes
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| Underlying ETFs: | SPDR S&P 500 ETF Trust, Energy Select Sector SPDR Fund
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| Amount: | $6,697,000
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| Maturity: | Jan. 19, 2029
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| Coupon: | 10.8% 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 of $10
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| Payout at maturity: | Par plus final coupon if each ETF finishes at or above coupon barrier; if the worst performer finishes below coupon barrier but at or above downside threshold, par; otherwise, full exposure to decline of worst performer from its initial level
|
| Call: | Automatically at par plus coupon if each ETF closes at or above initial level on any quarterly call observation date after six months
|
| Initial levels: | $474.93 for S&P Trust, $80.71 for Energy
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| Coupon barrier levels: | $332.45 for S&P Trust, $56.50 for Energy; 70% of initial levels
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| Downside thresholds: | $284.96 for S&P Trust, $48.43 for Energy; 60% of initial levels
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| Pricing date: | Jan. 16
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| Settlement date: | Jan. 19
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| Agents: | UBS Securities LLC and UBS Investment Bank
|
| Fees: | 2.25%
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| Cusip: | 90301Q703
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