UBS plans trigger autocallable contingent yield notes linked to Chevron

By Marisa Wong

Morgantown, W.Va., Oct. 13 – UBS AG, London Branch plans to price trigger autocallable contingent yield notes due Oct. 18, 2021 linked to the common stock of Chevron Corp., according to an FWP filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon at the rate of 8% per year if Chevron shares close at or above the downside threshold level, 72% to 77% of the initial share price, on the observation date for that month. The exact downside threshold will be set at pricing.

After one year, the notes will be automatically called at par of $10 if Chevron shares close at or above the initial share price on any monthly observation date.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

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

The notes will price on Oct. 14.

The Cusip number is 90275Y617.

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