Published on 4/4/2023 in the Prospect News Structured Products Daily.
New Issue: UBS prices $1.33 million trigger autocallable contingent yield notes on four stocks
By Wendy Van Sickle
Columbus, Ohio, April 4 – UBS AG, London Branch priced $1.33 million of trigger autocallable contingent yield notes due March 30, 2028 linked to the least performing of the common stocks of Microsoft Corp., Morgan Stanley, Walt Disney Co. and Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at the rate of 15.5% per year if each stock closes at or above its coupon barrier, 60% of its initial level, on the corresponding observation date.
The notes will be automatically called at par plus coupon if the shares of each stock closes at or above its initial share price on any monthly call observation date after six months.
If the notes are not called and the final share price of each stock 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 its 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% that the final share price of the least performing stock is less than its initial level.
UBS Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying stocks: | Morgan Stanley, Walt Disney Co., Bank of America Corp., Microsoft Corp.
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| Amount: | $1,332,000
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| Maturity: | March 30, 2028
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| Coupon: | 15.5% per year, paid monthly, if each stock closes at or above its coupon barrier on the related observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon if each stock finishes at or above coupon barrier; if worst performer finishes below coupon barrier but not below downside threshold, par; otherwise, 1% loss for each 1% decline of worst performer from initial level
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| Call: | Automatically at par plus coupon if each stock closes at or above initial level on any monthly call observation date after six months
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| Initial levels: | $276.38 for Microsoft, $84.64 for Morgan Stanley, $95.62 for Disney, $28.49 for BofA
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| Coupon barrier levels: | $165.83 for Microsoft, $50.78 for Morgan Stanley, $57.37 for Disney, $17.09 for BofA; 60% of initial levels
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| Downside thresholds: | $165.83 for Microsoft, $50.78 for Morgan Stanley, $57.37 for Disney, $17.09 for BofA; 60% of initial levels
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| Pricing date: | March 27
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| Settlement date: | March 30
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 4%
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| Cusip: | 90279GAD1
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