By Wendy Van Sickle
Columbus, Ohio, Oct. 1 – UBS AG, London Branch priced $8.36 million of trigger autocallable contingent yield notes due July 2, 2024 linked to an equally weighted basket of four stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the common stocks of Alcoa Corp., Cleveland-Cliffs Inc., Freeport-McMoRan Inc. and United States Steel Corp.
The notes will pay a contingent monthly coupon at an annualized rate of 10% if the basket closes at or above its 70% coupon barrier on the related monthly observation date.
The notes will be called at par plus coupon if the basket closes at or above the initial basket level on any monthly observation date after six months.
If the notes are not called, the payout at maturity will be par unless the final price of the basket is less than the 60% downside threshold, in which case investors will be fully exposed to the basket decline from 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: | Alcoa Corp., Cleveland-Cliffs Inc., Freeport-McMoRan Inc., United States Steel Corp.; each with a 25% weight
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Amount: | $8.36 million
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Maturity: | July 2, 2024
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Coupon: | 10% annualized, payable each quarter that basket closes at or above coupon barrier on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par unless final basket level is less than downside threshold, in which case full exposure to losses
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Call: | Automatically at par plus coupon if basket closes at or above initial share price on any monthly observation date after six months
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Initial share price: | $51.56 for Alcoa, $33.91 for Freeport-McMoRan, $21.18 for Cleveland-Cliffs, $22.85 for United States Steel
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Coupon barrier: | 70% of initial level
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Downside threshold: | 60% of initial level
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Pricing date: | Sept. 27
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Settlement date: | Sept. 30
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Agents: | UBS Securities LLC and UBS Investment Bank
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Fees: | 3%
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Cusip: | 90279DFS0
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