UBS plans five-year trigger phoenix autocallables linked to Microsoft

By Susanna Moon

Chicago, Jan. 26 – UBS AG, London Branch plans to price trigger phoenix autocallable optimization securities due Feb. 2, 2021 linked to Microsoft Corp. shares, 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% if Microsoft stock closes at or above the trigger level, 71% to 75% of the initial share price, on an observation date for that month. The exact trigger price will be set at pricing.

The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial price on any monthly observation date after one year.

The payout at maturity will be par plus the contingent coupon unless the stock finishes below the trigger level, in which case investors will be fully exposed to any losses.

UBS Financial Services Inc. and UBS Investment Bank are the underwriters.

The notes will price on Jan. 27 and settle on Jan. 29.

The Cusip number is 90275L524.

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