UBS plans trigger autocallable contingent yield notes on ETFs

By Sarah Lizee

Olympia, Wash., Jan. 15 – UBS AG, London Branch plans to price trigger autocallable contingent yield notes due Jan. 21, 2022 linked to the lesser performing of the SPDR S&P Bank ETF, SPDR S&P Biotech ETF Consumer Staples Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 11.1% if each ETF closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter.

The notes will be called at par if each ETF closes at or above its initial level on any quarterly observation date other than the final one.

The payout at maturity will be par unless either ETF finishes below the 70% downside threshold, in which case investors will lose 1% for each 1% decline of the worst performing ETF.

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

The notes will price on Jan. 17.

The Cusip number is 90270K2Z1.

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