Published on 3/31/2022 in the Prospect News Structured Products Daily.
New Issue: UBS prices $2.77 million trigger autocallable yield notes on airline stocks
By Wendy Van Sickle
Columbus, Ohio, March 31 – UBS AG, London Branch priced $2.77 million of trigger autocallable yield notes due March 29, 2023 linked to the least performing of the common stocks of American Airlines Group Inc., Delta Air Lines, Inc., and United Airlines Holdings, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a coupon at the rate of 20.4% per year.
The notes will be automatically called at par if the shares of each stock closes at or above its initial share price on any quarterly call observation date.
If the notes are not called and the final share price of each stock is greater than or equal to the downside threshold level, 60% of the initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price of the least performing stock is less than its initial share price.
UBS Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger autocallable yield notes
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| Underlying stocks: | American Airlines Group Inc., Delta Air Lines, Inc., and United Airlines Holdings, Inc.
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| Amount: | $2,765,000
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| Maturity: | March 29, 2023
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| Contingent coupon: | 20.4% annual rate, paid quarterly
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below downside threshold level, in which case 1% loss for each 1% decline of laggard stock from initial level
|
| Call: | Automatically at par due if each stock closes at or above initial level on any quarterly call observation date
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| Initial levels: | $16.72 for American, $37.26 for Delta, $42.78 for United
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| Downside thresholds: | $10.03 for American, $22.36 for Delta, $25.67 for United; 60% of initial levels
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| Pricing date: | March 25
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| Settlement date: | April 1
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| Agents: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 1.2%
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| Cusip: | 90279DU46
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