Published on 4/3/2024 in the Prospect News Structured Products Daily.
New Issue: UBS sells $545,000 trigger autocallable contingent notes with memory on stocks
By Kiku Steinfeld
Chicago, April 3 – UBS AG, London Branch priced $545,000 of trigger autocallable contingent yield notes with memory interest due July 10, 2025 linked to the stock performance of Alphabet Inc., Microsoft Corp. and Walgreens Boots Alliance, Inc., 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 any related observation date. Contingent coupon payments will include any previously unpaid coupons.
The notes will be automatically called at par plus the coupon if the shares of each stock close at or above its initial share price on any monthly call observation date after three months.
If the notes are not called and the final share price of each stock is greater than or equal to the downside threshold level, 60% of the initial share price, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1% for every 1% that the final share price of the least performing stock is less than its initial share price.
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 stocks: | Alphabet Inc., Microsoft Corp. and Walgreens Boots Alliance, Inc.
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| Amount: | $545,000
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| Maturity: | July 10, 2025
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| Coupon: | 15.5% per year, paid monthly, if each stock closes at or above its coupon barrier on any related observation date, plus any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | Par plus final coupon unless any stock finishes below downside threshold level, in which case 1% loss for each 1% decline of laggard stock 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 three months
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| Initial levels: | $120.14 for Alphabet, $337.22 for Microsoft, $29.10 for Walgreens Boots
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| Coupon barrier levels: | $72.08 for Alphabet, $202.33 for Microsoft, $17.46 for Walgreens Boots; 60% of initial levels
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| Downside thresholds: | $72.08 for Alphabet, $202.33 for Microsoft, $17.46 for Walgreens Boots; 60% of initial levels
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| Pricing date: | July 7, 2023
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| Settlement date: | July 12, 2023
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 0.1%
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| Cusip: | 90279GVC0
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