Published on 2/7/2022 in the Prospect News Structured Products Daily.
New Issue: UBS prices $2.29 million trigger callable contingent yield notes on four stocks
By Wendy Van Sickle
Columbus, Ohio, Feb. 7 – UBS AG, London Branch priced $2.29 million of trigger callable contingent yield notes due Feb. 4, 2027 linked to the least performing of the stocks of Citigroup Inc., Wells Fargo & Co., First Horizon Corp. and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annual rate of 11.15% if each stock’s closing level is at least 70% of its initial level on the observation date for that period.
The notes will be callable at par on any quarterly observation date other than the final one.
If the notes are not called and each stock finishes at or above its 60% downside threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing stock’s final level is below its initial level.
UBS Securities LLC 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 stocks: | Citigroup Inc., First Horizon Corp., JPMorgan Chase & Co., Wells Fargo & Co.
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| Amount: | $2,288,000
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| Maturity: | Feb. 4, 2027
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| Coupon: | 11.15% per year, payable monthly if each stock closes at or above its coupon barrier level on the observation date for that period
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below its downside threshold level, in which case full exposure to the losses of the worst performing stock
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| Call option: | At par on any quarterly observation date other than the final date
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| Initial levels: | $66.56 for Citigroup, $17.49 for First Horizon, $151.15 for JPMorgan, $55.60 for Wells
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| Coupon barrier levels: | $46.59 for Citigroup, $12.24 for First Horizon, $105.81 for JPMorgan, $38.92 for Wells; 70% of initial levels
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| Downside threshold levels: | $39.94 for Citigroup, $10.49 for First Horizon, $90.69 for JPMorgan, $33.36 for Wells; 60% of initial levels
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| Pricing date: | Feb. 1
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| Settlement date: | Feb. 4
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 3.7%
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| Cusip: | 90279DVU7
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