New Issue: UBS sells $1.57 million capped contingent absolute return gears on basket of 19 stocks

By Kiku Steinfeld

Chicago, Aug. 26 – UBS AG, London Branch priced $1.57 million of 0% capped contingent absolute return gears due Aug. 24, 2023 an unequally-weighted basket of stocks, according to a 424B2 filing with the Securities and Exchange.

The stocks are FedEx Corp. (10% weight), United Parcel Service, Inc. (10% weight), CSX Corp. (8% weight), Kansas City Southern (8% weight), Norfolk Southern Corp. (8% weight), Union Pacific Corp. (8% weight), Ryder System, Inc. (5% weight), C.H. Robinson Worldwide, Inc. (4% weight), Expeditors International of Washington, Inc. (4% weight), J.B. Hunt Transport Services, Inc. (4% weight), Kirby Corp. (4% weight), Landstar System, Inc. (4% weight), Matson, Inc. (4% weight), XPO Logistics, Inc. (4% weight), American Airlines Group Inc. (3% weight), Delta Air Lines, Inc. (3% weight), Southwest Airlines Co. (3% weight), Alaska Air Group, Inc. (2% weight), JetBlue Airways Corp. (2% weight) and United Airlines Holdings, Inc. (2% weight).

If the basket finishes above the initial level, the payout at maturity will be par plus 2 times the basket return, capped at par plus 44%. If the basket falls but finishes at or above the downside threshold level, 85% of its initial level, the payout will be par plus the absolute value of the basket return. If the basket falls by more than 15%, investors will lose 0.5% for every 1% decline of the basket beyond 15%.

UBS Securities LLC and UBS Investment Bank are the agents.

Issuer:	UBS AG, London Branch
Issue:	Capped contingent absolute return gears
Underlying basket:	FedEx Corp. with a 10% weight, United Parcel Service, Inc. with a 10% weight, CSX Corp. with an 8% weight, Kansas City Southern with an 8% weight, Norfolk Southern Corp. with an 8% weight, Union Pacific Corp. with an 8% weight, Ryder System, Inc. with a 5% weight, C.H. Robinson Worldwide, Inc. with a 4% weight, Expeditors International of Washington, Inc. with a 4% weight, J.B. Hunt Transport Services, Inc. with a 4% weight, Kirby Corp. with a 4% weight, Landstar System, Inc. with a 4% weight, Matson, Inc. with a 4% weight, XPO Logistics, Inc. with a 4% weight, American Airlines Group Inc. with a 3% weight, Delta Air Lines, Inc. with a 3% weight, Southwest Airlines Co. with a 3% weight, Alaska Air Group, Inc. with a 2% weight, JetBlue Airways Corp. with a 2% weight and United Airlines Holdings, Inc. with a 2% weight
Amount:	$1,571,000
Maturity:	Aug. 24, 2023
Coupon:	0%
Price:	Par
Payout at maturity:	If basket finishes above initial level, par plus 2 times basket return, capped at par plus 44%; if basket falls but finishes at or above downside threshold level, par plus absolute value of basket return; otherwise, 0.5% loss for every 1% decline of basket beyond 15%
Initial levels:	$207.88 for FedEx Corp., $160.34 for United Parcel Service, Inc., $74.05 for CSX Corp., $180.75 for Kansas City Southern, $205.40 for Norfolk Southern Corp., $190.95 for Union Pacific Corp., $39.57 for Ryder System, Inc., $95.43 for C.H. Robinson Worldwide, Inc., $87.17 for Expeditors International of Washington, Inc., $138.27 for J.B. Hunt Transport Services, Inc., $43.76 for Kirby Corp., $130.44 for Landstar System, Inc., $40.47 for Matson, Inc., $83.64 $83.64 for XPO Logistics, Inc., $12.68 for American Airlines Group. Inc., $27.67 for Delta Air Lines, Inc., $34.27 for Southwest Airlines Co., $35.85 for Alaska Air Group, Inc., $10.98 for JetBlue Airways Corp. and $34.44 for United Airlines Holdings, Inc.
Downside threshold:	85% of initial level
Pricing date:	Aug. 20
Settlement date:	Aug. 24
Agents:	UBS Securities LLC. and UBS Investment Bank
Fees:	0.34%
Cusip:	90276BGC1

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