United Fire Group Inc SEC Filings

UBS AG is offering Trigger Autocallable Contingent Yield Notes linked to the common stock of Apollo Global Management, Inc. (APO) with an expected three-year term ending on or about July 6, 2028. The notes are unsubordinated, unsecured debt obligations of UBS AG London Branch and are not listed on any exchange.

Key economic terms

• Principal amount: $1,000 per note.
• Contingent coupon: paid quarterly at a minimum 17.10% per annum (≈4.275% per quarter) if APO’s closing level on the observation date is ≥ 80% of the initial level (the “coupon barrier”). No coupon is paid for that quarter if the barrier is breached.
• Automatic call: if on any quarterly observation date before the final valuation date the closing level is ≥ 100% of the initial level (the “call threshold”), UBS will redeem early at par plus the applicable coupon. After an automatic call no further payments are due.
• Maturity payment: if not previously called:
• Final level ≥ 80% of initial level → repayment of principal ($1,000).
• Final level < 80% of initial level → repayment equals $1,000 × (1 + underlying return); investors suffer a loss matching APO’s percentage decline, potentially losing their entire investment.
• Key levels (expressed as % of initial): Call threshold 100%, Coupon barrier 80%, Downside threshold 80%.
• Key dates: Trade 7/10/2025; Settlement 7/15/2025; Quarterly observations; Final valuation 6/30/2028; Maturity 7/6/2028.
• Estimated initial value: $936.50–$966.50 per $1,000 note, below issue price due to underwriting discount ($20), hedging and funding costs.

Risk highlights

• Principal at risk: if APO falls >20% at final valuation and the notes are not called, investors lose 1-for-1 with the stock.
• Coupon uncertainty: coupons are contingent; prolonged declines below the barrier eliminate income.
• Credit risk: payments depend solely on UBS AG’s ability to pay. A Swiss FINMA resolution could result in write-down or conversion to equity.
• Liquidity: no listing; secondary market making is discretionary. Sale prior to call/maturity could be at a significant discount.
• Tax: intended treatment as prepaid derivative with ordinary-income coupons; tax outcome uncertain.

Investor profile

Suitable only for investors who (1) are comfortable with APO equity volatility and UBS credit exposure, (2) can tolerate full loss of principal, (3) seek enhanced contingent income, and (4) are willing to forgo dividends and upside participation in APO.