Published on 10/28/2021 in the Prospect News Structured Products Daily.
New Issue: UBS prices $9.55 million contingent income autocallables on fast-food stocks
By Wendy Van Sickle
Columbus, Ohio, Oct. 28 – UBS AG, London Branch priced $9.55 million of contingent income autocallable securities with daily coupon observation due Oct. 25, 2024 linked to the stock performance of McDonald’s Corp., Restaurant Brands International Inc. and Yum! Brands, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 10.7% if each stock finishes above its 75% coupon barrier on the every day that period.
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 after six months.
If all stocks finish at or above their respective downside threshold level, 65% of initial level, the payout at maturity will be par plus the final coupon, if any. 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 daily coupon observation
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| Underlying stocks: | McDonald’s Corp., Restaurant Brands International Inc., Yum! Brands, Inc.
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| Amount: | $9.55 million
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| Maturity: | Oct. 25, 2024
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| Coupon: | 10.1% per year, payable quarterly if all stocks close at or above coupon barrier level on every day that period
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| Price: | Par of $10
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| Payout at maturity: | Par plus final coupon, if any 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 after six months
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| Initial levels: | $238.44 for McDonald's, $61.96 for Restaurant Brands, $126.57 for Yum!
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| Coupon barriers: | $178.83 for McDonald's, $46.47 for Restaurant Brands, $94.93 for Yum!; 75% of initial share price
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| Downside thresholds: | $154.99 for McDonald's, $40.27 for Restaurant Brands, $82.27 for Yum!; 65% of initial share price
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| Pricing date: | Oct. 22
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| Settlement date: | Oct. 27
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| Agent: | UBS Securities LLC
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 2.5%
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| Cusip: | 90285B656
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