By Angela McDaniels
Tacoma, Wash., July 8 – UBS AG, London Branch priced $1.37 million of buffer autocallable contingent yield notes with memory interest due Dec. 30, 2021 linked to the lesser performing of the SPDR S&P Biotech exchange-traded fund and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If each ETF closes at or above its downside threshold, 80% of its initial share price, on a monthly observation date, the notes will pay a contingent coupon that month at the rate of 9.75% per year plus any previously unpaid contingent coupons.
After six months, the notes will be automatically called at par if each index closes at or above its call threshold level, 95% of its initial level, on any monthly observation date.
If the notes have not been called, the payout at maturity will be par unless either ETF finishes below its downside threshold, in which case investors will lose 1% for every 1% that the lesser-performing ETF declines beyond 20%.
UBS Securities LLC and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Buffer autocallable contingent yield notes with memory interest
|
| Underlying ETFs: SPDR S&P Biotech ETF and SPDR S&P Oil & Gas Exploration & Production ETF
|
| Amount: | $1,371,000
|
| Maturity: | Dec. 30, 2021
|
| Coupon: | If each ETF closes at or above downside threshold on monthly observation date, notes pay contingent coupon that month at rate of 9.75% per year plus any previously unpaid contingent coupons
|
| Price: | Par
|
| Payout at maturity: | Par unless either ETF finishes below downside threshold, in which case 1% loss for every 1% that lesser-performing ETF declines beyond 20%
|
| Call: | After six months, automatically at par if each index closes at or above call threshold level on any monthly observation date
|
| Initial share prices: | $84.41 for biotech ETF and $25.99 for oil ETF
|
| Call thresholds: | $80.19 for biotech ETF and $24.69 for oil ETF, or 95% of initial share prices
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| Downside thresholds: | $67.53 for biotech ETF and $20.79 for oil ETF, or 80% of initial share prices
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| Pricing date: | June 25
|
| Settlement date: | June 28
|
| Underwriters: | UBS Securities LLC and UBS Investment Bank
|
| Fees: | 2.75%
|
| Cusip: | 90270KZY8
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