By William Gullotti
Buffalo, N.Y., Aug. 18 – UBS AG, London Branch priced $6.23 million of contingent income autocallable securities with memory coupon due Aug. 15, 2025 linked to the American depositary shares of Petroleo Brasileiro SA and Vale SA, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 23.25% if each stock finishes above its 60% coupon barrier on the corresponding observation date. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be called at par of $10 plus the contingent coupon if all stocks close at or above their respective initial share price on any quarterly determination date.
If all stocks finish at or above their respective downside threshold level, 60% of initial level, the payout at maturity will be par plus all unpaid coupons. Otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level.
UBS Securities LLC is the agent and Morgan Stanley Wealth Management is the dealer.
Issuer: | UBS AG, London Branch
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Issue: | Contingent income autocallable securities with memory coupon
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Underlying stocks: | Petroleo Brasileiro SA, Vale SA
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Amount: | $6,233,000
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Maturity: | Aug. 15, 2025
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Coupon: | 23.25% per year, payable quarterly if all stocks close at or above coupon barrier level on the relevant observation date; coupon payment events will automatically include any previously unpaid coupons
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Price: | Par of $10
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Payout at maturity: | Par plus all unpaid coupons unless the worst performing stock finishes below downside threshold level, in which case investors will be exposed to the worst performer’s decline from its initial share price
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Call: | At par plus contingent coupon if all stocks close at or above initial share price on any quarterly determination date
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Initial levels: | $13.62 for Petroleo, $13.60 for Vale
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Coupon barriers: | $8.17 for Petroleo, $8.16 for Vale; 60% of initial share price
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Downside thresholds: | $8.17 for Petroleo, $8.16 for Vale; 60% of initial share price
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Pricing date: | Aug. 12
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Settlement date: | Aug. 17
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Agent: | UBS Securities LLC
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Dealer: | Morgan Stanley Wealth Management
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Fees: | 2.25%
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Cusip: | 90289U643
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