By Taylor Fox
New York, Feb. 18 – UBS AG, London Branch priced $10 million of buffered contingent income autocallable securities with memory coupon and downside leverage due Feb. 2, 2022 linked to the common stock of United Airlines Holdings, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon at an annual rate of 16% if the stock finishes above its 60% downside threshold on a related determination date. Previously unpaid coupons will also be paid.
The notes will be called at par plus the contingent coupon if the shares close at or above the initial share price on any monthly determination date, other than the final determination date.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of shares of United stock equal to $1,000 divided by the downside threshold level.
UBS Securities LLC is the agent and Morgan Stanley Wealth Management is the dealer.
| Issuer: | UBS AG, London Branch
|
| Issue: | Buffered contingent income autocallable securities with memory coupon and downside leverage
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| Underlying stock: | United Airlines Holdings, Inc.
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| Amount: | $10 million
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| Maturity: | Feb. 2, 2022
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| Coupon: | 16% per year, payable monthly if shares close at or above downside threshold level on the observation date for that period; previously unpaid coupons will also be paid
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus any final contingent coupon; otherwise, 39.1696 United shares
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| Call: | At par plus contingent coupon if shares close at or above initial share price on any monthly determination date, other than final determination date
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| Initial share price: | $42.55
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| Downside threshold: | $25.53, 60% of initial share price
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| Pricing date: | Jan. 28
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| Settlement date: | Feb. 2
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| Agent: | UBS Securities LLC
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| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 0.2%
|
| Cusip: | 90276BPJ6
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