By William Gullotti
Buffalo, N.Y., Dec. 6 – UBS AG, London Branch priced $4.35 million of trigger autocallable contingent yield notes with memory interest due Nov. 29, 2024 linked to the least performing of the Energy Select Sector SPDR Fund and the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 9.85% per year if each ETF closes at or above its coupon barrier, 70% of its initial level, on the related observation date. Previously unpaid coupons, if any, will be automatically included whenever a contingent coupon is paid.
The notes will be automatically called at par plus coupon if the shares of each ETF close at or above its initial share price on any quarterly call observation date after six months.
If the notes are not called and the final share price of each ETF is greater than or equal to the downside threshold level, 70% of the initial share price, the payout at maturity will be par plus the final coupon. Otherwise, investors will receive a number of shares of the worst performer equal to $1,000 divided by that ETF’s initial level or, at the issuer’s option, the cash equivalent.
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 with memory interest
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Underlying ETFs: | Energy Select Sector SPDR Fund, SPDR S&P Oil & Gas Exploration & Production ETF
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Amount: | $4.35 million
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Maturity: | Nov. 29, 2024
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Coupon: | 9.85% per year, paid quarterly, if each ETF closes at or above its coupon barrier on any related observation date; coupon payment events will automatically include any previously unpaid coupons
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Price: | Par
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Payout at maturity: | Par plus final coupon unless any ETF finishes below downside threshold level, in which case investors will receive shares of the worst performing ETF equal to its equity ratio or, at the issuer’s option, the cash equivalent
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Call: | Automatically at par plus coupon if each ETF closes at or above initial level on any quarterly call observation date after six months
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Initial levels: | $57.91 for Energy, $105.74 for Oil & Gas ETF
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Coupon barrier levels: | $40.54 for Energy, $74.02 for Oil & Gas ETF; 70% of initial levels
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Downside thresholds: | $40.54 for Energy, $74.02 for Oil & Gas ETF; 70% of initial levels
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Equity ratio: | 17.2682 for Energy, 9.4572 for Oil & Gas ETF; shares delivered per note
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Pricing date: | Nov. 24
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Settlement date: | Nov. 30
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Agents: | UBS Securities LLC and UBS Investment Bank
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Fees: | 3.4%
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Cusip: | 90279DRE8
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