UBS plans step-down trigger autocallables on SPDR S&P Bank ETF

By Wendy Van Sickle

Columbus, Ohio, Dec. 14 – UBS AG, London Branch plans to price 0% step-down trigger autocallable notes due Dec. 31, 2021 linked to the SPDR S&P Bank exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be automatically called at par of $10 plus a call premium – expected to be 7.2% to 8.2% per year – if the fund closes at or above its call threshold level on any annual observation date. The call threshold level will be equal to the initial fund level for every observation date except for the final observation date, Dec. 27, 2021. For the final observation date, the call threshold level will be 70% of the initial level.

If the notes are not subject to an automatic call, then the final level of the fund will be less than 70% of its initial level, and investors will be exposed to the decline of the fund from its initial level.

UBS Financial Services Inc. and UBS Investment Bank are the underwriters.

The notes will price Dec. 28.

The Cusip number is 90280M277.

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