Published on 3/3/2024 in the Prospect News Structured Products Daily.
New Issue: UBS prices $783,000 trigger callable contingent yield notes on three ETFs
By Kiku Steinfeld
Chicago, March 4 – UBS AG, London Branch priced $783,000 of trigger callable contingent yield notes due July 2, 2026 linked to the worst performing of the iShares Russell 2000 ETF, the SPDR S&P 500 ETF Trust and the Invesco QQQ Trust, series 1, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 8.4% if each ETF’s closing level is at least 60% of its initial level on the relevant observation date.
The notes will be callable at par plus any coupon due on any quarterly observation date after six months.
If the notes are not called and each ETF finishes at or above its 60% trigger level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1% for every 1% that the worst performer’s final level is below its initial level, payable in shares or cash at the option of the issuer.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
Issuer: | UBS AG, London Branch
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Issue: | Trigger callable contingent yield notes
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Underlying funds: | iShares Russell 2000 ETF, SPDR S&P 500 ETF Trust, Invesco QQQ Trust, series 1
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Amount: | $783,000
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Maturity: | July 2, 2026
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Coupon: | 8.4% per year, payable monthly if each ETF closes at or above its coupon barrier level on the corresponding 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 trigger level; otherwise, full exposure to the decline of the worst performing ETF from its initial level, payable in shares or cash at the option of the issuer
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Call option: | At par plus any coupon due on any quarterly observation date after six months
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Initial levels: | $184.26 for iShares, $436.39 for S&P ETF, $364.54 for QQQ
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Coupon barrier levels: | $92.13 for iShares, $182.27 for S&P ETF, $182.27 for QQQ; 50% of initial levels
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Trigger levels: | $92.13 for iShares, $182.27 for S&P ETF, $182.27 for QQQ; 50% of initial levels
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Equity ratios: | 5.4271 for iShares, 2.2915 for S&P ETF, 2.7432 for QQQ
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Pricing date: | June 28, 2023
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Settlement date: | July 3, 2023
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Agents: | UBS Financial Services Inc. and UBS Investment Bank
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Fees: | 0.25%
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Cusip: | 90279GSC4
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