[FWP] ETRACS Whitney US Critical Technologies ETN Free Writing Prospectus
UBS AG London Branch is marketing Contingent Income Auto-Callable Securities maturing on or about 19 July 2028 that reference the common stock of RH (ticker: RH UN). Each $1,000 note offers a quarterly contingent coupon of $46.875 (18.75% p.a.) provided the underlying closes at or above the 50% downside threshold on the relevant determination date. A “memory” feature repays missed coupons if the condition is satisfied on a later date.
The securities may be auto-called after the initial six-month non-call period whenever RH’s closing price is at or above the 100% call threshold on a quarterly observation date. If called, investors receive par plus the current coupon (and any unpaid coupons). At maturity, holders receive either (i) par plus any due coupons if RH is at or above the 50% threshold, or (ii) a cash value proportionate to RH’s decline if the stock has fallen below that level, exposing investors to up to 100% principal loss.
The notes are unsecured, unsubordinated obligations of UBS; repayment depends on the bank’s creditworthiness. Estimated initial value is $902.30–$932.30, meaning investors pay a premium to theoretical value. The notes will not be listed, and UBS/affiliates expect to take 2.50% in selling commissions. Key risks include credit risk, liquidity constraints, exposure to a single underlying equity, potential early redemption, and uncertain U.S. tax treatment.
UBS AG London Branch propone titoli Contingent Income Auto-Callable con scadenza prevista intorno al 19 luglio 2028, che fanno riferimento alle azioni ordinarie di RH (ticker: RH UN). Ogni titolo da $1.000 offre un cedola trimestrale condizionata di $46,875 (18,75% annuo), a condizione che il prezzo di chiusura del sottostante sia pari o superiore alla soglia di ribasso del 50% nella data di determinazione pertinente. Una funzione “memory” consente di recuperare le cedole non pagate se la condizione viene soddisfatta in una data successiva.
I titoli possono essere richiamati automaticamente dopo un periodo iniziale di sei mesi senza possibilità di call, ogni volta che il prezzo di chiusura di RH è pari o superiore alla soglia di call del 100% in una data di osservazione trimestrale. In caso di call, gli investitori ricevono il valore nominale più la cedola corrente (e qualsiasi cedola non pagata). Alla scadenza, i detentori riceveranno (i) il valore nominale più le eventuali cedole dovute se RH si trova al di sopra della soglia del 50%, oppure (ii) un valore in contanti proporzionale al calo di RH se il titolo è sceso al di sotto di tale livello, esponendo gli investitori a una perdita del capitale fino al 100%.
I titoli sono obbligazioni non garantite e non subordinate di UBS; il rimborso dipende dalla solidità creditizia della banca. Il valore iniziale stimato è compreso tra $902,30 e $932,30, il che significa che gli investitori pagano un premio rispetto al valore teorico. I titoli non saranno quotati, e UBS e le sue affiliate prevedono commissioni di vendita pari al 2,50%. I rischi principali includono il rischio di credito, limitazioni di liquidità, esposizione a un singolo titolo azionario, potenziale rimborso anticipato e incertezze fiscali negli Stati Uniti.
UBS AG London Branch está comercializando Valores Contingent Income Auto-Callable con vencimiento aproximadamente el 19 de julio de 2028, que hacen referencia a las acciones ordinarias de RH (símbolo: RH UN). Cada nota de $1,000 ofrece un cupón trimestral contingente de $46.875 (18.75% anual), siempre que el subyacente cierre en o por encima del umbral de caída del 50% en la fecha de determinación correspondiente. Una característica de “memoria” permite pagar cupones atrasados si la condición se cumple en una fecha posterior.
Los valores pueden ser auto-llamados después del período inicial de seis meses sin opción de llamada, siempre que el precio de cierre de RH esté en o por encima del umbral de llamada del 100% en una fecha de observación trimestral. Si se llaman, los inversores reciben el valor nominal más el cupón actual (y cualquier cupón no pagado). Al vencimiento, los tenedores reciben (i) el valor nominal más los cupones adeudados si RH está en o por encima del umbral del 50%, o (ii) un valor en efectivo proporcional a la caída de RH si la acción ha caído por debajo de ese nivel, exponiendo a los inversores a una pérdida de principal de hasta el 100%.
Los valores son obligaciones no garantizadas y no subordinadas de UBS; el reembolso depende de la solvencia crediticia del banco. El valor inicial estimado es de $902.30–$932.30, lo que significa que los inversores pagan una prima sobre el valor teórico. Los valores no estarán listados y UBS/afiliados esperan recibir comisiones de venta del 2.50%. Los riesgos clave incluyen riesgo crediticio, restricciones de liquidez, exposición a una sola acción subyacente, posible rescate anticipado y tratamiento fiscal incierto en EE.UU.
UBS AG 런던 지점은 만기일이 2028년 7월 19일경인 Contingent Income Auto-Callable 증권을 마케팅하고 있으며, 이는 RH (티커: RH UN)의 보통주를 참조합니다. 각 $1,000 노트는 해당 결정일에 기초자산이 50% 하락 한계선 이상으로 마감될 경우 분기별 조건부 쿠폰 $46.875 (연 18.75%)를 제공합니다. “메모리” 기능은 조건이 이후 날짜에 충족되면 놓친 쿠폰을 상환합니다.
이 증권은 초기 6개월 비콜 기간 이후, RH 종가가 분기별 관측일에 100% 콜 한계선 이상일 경우 자동으로 콜될 수 있습니다. 콜될 경우 투자자는 원금과 현재 쿠폰(및 미지급 쿠폰)을 받습니다. 만기 시 보유자는 (i) RH가 50% 한계선 이상일 경우 원금과 미지급 쿠폰을 받거나, (ii) 주가가 그 수준 아래로 떨어진 경우 RH 하락에 비례한 현금 가치를 받으며 최대 100% 원금 손실 위험에 노출됩니다.
이 노트는 UBS의 무담보, 비후순위 채무이며 상환은 은행의 신용도에 달려 있습니다. 추정 초기 가치는 $902.30–$932.30으로, 투자자는 이론 가치 대비 프리미엄을 지불합니다. 이 노트는 상장되지 않으며 UBS 및 계열사는 2.50%의 판매 수수료를 받을 것으로 예상합니다. 주요 위험 요소로는 신용 위험, 유동성 제약, 단일 기초 주식에 대한 노출, 조기 상환 가능성, 미국 세금 처리 불확실성이 포함됩니다.
UBS AG succursale de Londres commercialise des titres Contingent Income Auto-Callable arrivant à échéance vers le 19 juillet 2028, référencés sur les actions ordinaires de RH (symbole : RH UN). Chaque note de 1 000 $ offre un coupon trimestriel conditionnel de 46,875 $ (18,75 % par an), à condition que le sous-jacent clôture à ou au-dessus du seuil de baisse de 50 % à la date de détermination pertinente. Une fonction « mémoire » permet de verser les coupons manqués si la condition est remplie à une date ultérieure.
Les titres peuvent être rappelés automatiquement après une période initiale de non-rappel de six mois, chaque fois que le cours de clôture de RH est égal ou supérieur au seuil de rappel de 100 % à une date d’observation trimestrielle. En cas de rappel, les investisseurs reçoivent la valeur nominale plus le coupon courant (et tous les coupons impayés). À l’échéance, les détenteurs reçoivent soit (i) la valeur nominale plus les coupons dus si RH est au-dessus du seuil de 50 %, soit (ii) une valeur en espèces proportionnelle à la baisse de RH si l’action est tombée en dessous de ce niveau, exposant les investisseurs à une perte en capital pouvant atteindre 100 %.
Les notes sont des obligations non garanties et non subordonnées d’UBS ; le remboursement dépend de la solvabilité de la banque. La valeur initiale estimée est comprise entre 902,30 $ et 932,30 $, ce qui signifie que les investisseurs paient une prime par rapport à la valeur théorique. Les notes ne seront pas cotées, et UBS/affiliés s’attendent à percevoir des commissions de vente de 2,50 %. Les principaux risques comprennent le risque de crédit, les contraintes de liquidité, l’exposition à une seule action sous-jacente, le remboursement anticipé potentiel et l’incertitude fiscale aux États-Unis.
UBS AG London Branch bietet Contingent Income Auto-Callable Securities mit Fälligkeit um den 19. Juli 2028 an, die sich auf die Stammaktien von RH (Ticker: RH UN) beziehen. Jede $1.000-Anleihe bietet einen vierteljährlichen bedingten Kupon von $46,875 (18,75 % p.a.), vorausgesetzt, der Basiswert schließt am relevanten Feststellungstag auf oder über der 50%-Abschwungschwelle. Eine „Memory“-Funktion zahlt verpasste Kupons nach, wenn die Bedingung zu einem späteren Zeitpunkt erfüllt wird.
Die Wertpapiere können nach der anfänglichen sechsmonatigen Nicht-Kündigungsfrist automatisch zurückgerufen werden, wenn der Schlusskurs von RH an einem quartalsweisen Beobachtungstag auf oder über der 100%-Call-Schwelle liegt. Im Falle eines Rückrufs erhalten Anleger den Nennwert plus den aktuellen Kupon (und alle ausstehenden Kupons). Bei Fälligkeit erhalten Inhaber entweder (i) den Nennwert plus fällige Kupons, sofern RH über der 50%-Schwelle liegt, oder (ii) einen Barausgleich proportional zum Kursrückgang von RH, falls die Aktie unter dieses Niveau gefallen ist, was ein Risiko eines Totalverlusts des Kapitals von bis zu 100 % birgt.
Die Anleihen sind ungesicherte, nicht nachrangige Verbindlichkeiten von UBS; die Rückzahlung hängt von der Bonität der Bank ab. Der geschätzte Anfangswert liegt bei $902,30–$932,30, was bedeutet, dass Anleger eine Prämie gegenüber dem theoretischen Wert zahlen. Die Anleihen werden nicht börslich gehandelt, und UBS/Tochtergesellschaften erwarten Verkaufsprovisionen von 2,50 %. Zu den wesentlichen Risiken zählen Kreditrisiko, Liquiditätsbeschränkungen, Konzentration auf eine einzelne Aktie, mögliche vorzeitige Rückzahlung und unsichere US-Steuerbehandlung.
- 18.75% annualized contingent coupon with memory feature can significantly enhance portfolio income if RH remains above the 50% threshold.
- 50% downside buffer protects principal against moderate declines in the underlying before losses begin.
- Quarterly auto-call at par provides early monetization if RH trades at or above its initial price.
- Investors lose 1:1 principal once RH falls more than 50%, potentially up to total loss.
- No participation in RH appreciation; upside is capped at coupon payments.
- Notes are unsecured obligations of UBS; adverse changes in UBS credit quality affect value and repayment.
- Estimated initial value (≈90–93% of par) indicates an immediate mark-to-model loss and high embedded fees.
- No listing or guaranteed secondary market, leading to potentially wide bid-ask spreads and limited liquidity.
- Early-call feature favors issuer, terminating high coupons if RH performs well.
Insights
TL;DR: High coupon offsets high downside; suitable only for yield-seeking investors comfortable with 50% buffer and UBS credit risk.
The 18.75% memory coupon is attractive versus vanilla yields, but it is financed by foregoing all upside in RH and accepting full downside once the 50% buffer is breached. UBS’ estimated value (≈90–93% of issue price) indicates a sizeable fee load and negative carry from inception. Early-call mechanics favour the issuer: if RH performs well, notes are likely to be redeemed quickly, capping investor returns, whereas poor performance leaves holders exposed until maturity. Lack of listing and wide bid-offer spreads further raise exit costs. Credit-spread volatility at UBS adds another layer of mark-to-market risk. Overall, impact is neutral; the product is niche rather than transformational, offering enhanced income for those willing to assume concentrated equity and credit risk.
TL;DR: Principal-at-risk note with single-stock exposure and limited liquidity heightens loss potential despite 50% buffer.
Key risk drivers are (1) single-equity volatility—RH’s furniture retail business has exhibited large swings, so a 50% drawdown over three years is plausible; (2) credit risk—UBS’ unsecured obligation subjects holders to any future credit event or FINMA resolution action; (3) structural asymmetry—investors cap their upside at coupons and par, but face uncapped downside below the threshold; (4) secondary-market risk—no exchange listing and internal funding rates imply discounted bids if liquidity is needed. The product may suit sophisticated accounts seeking high current income and who can hold to maturity, but is unsuitable for conservative investors or those requiring daily liquidity.
UBS AG London Branch propone titoli Contingent Income Auto-Callable con scadenza prevista intorno al 19 luglio 2028, che fanno riferimento alle azioni ordinarie di RH (ticker: RH UN). Ogni titolo da $1.000 offre un cedola trimestrale condizionata di $46,875 (18,75% annuo), a condizione che il prezzo di chiusura del sottostante sia pari o superiore alla soglia di ribasso del 50% nella data di determinazione pertinente. Una funzione “memory” consente di recuperare le cedole non pagate se la condizione viene soddisfatta in una data successiva.
I titoli possono essere richiamati automaticamente dopo un periodo iniziale di sei mesi senza possibilità di call, ogni volta che il prezzo di chiusura di RH è pari o superiore alla soglia di call del 100% in una data di osservazione trimestrale. In caso di call, gli investitori ricevono il valore nominale più la cedola corrente (e qualsiasi cedola non pagata). Alla scadenza, i detentori riceveranno (i) il valore nominale più le eventuali cedole dovute se RH si trova al di sopra della soglia del 50%, oppure (ii) un valore in contanti proporzionale al calo di RH se il titolo è sceso al di sotto di tale livello, esponendo gli investitori a una perdita del capitale fino al 100%.
I titoli sono obbligazioni non garantite e non subordinate di UBS; il rimborso dipende dalla solidità creditizia della banca. Il valore iniziale stimato è compreso tra $902,30 e $932,30, il che significa che gli investitori pagano un premio rispetto al valore teorico. I titoli non saranno quotati, e UBS e le sue affiliate prevedono commissioni di vendita pari al 2,50%. I rischi principali includono il rischio di credito, limitazioni di liquidità, esposizione a un singolo titolo azionario, potenziale rimborso anticipato e incertezze fiscali negli Stati Uniti.
UBS AG London Branch está comercializando Valores Contingent Income Auto-Callable con vencimiento aproximadamente el 19 de julio de 2028, que hacen referencia a las acciones ordinarias de RH (símbolo: RH UN). Cada nota de $1,000 ofrece un cupón trimestral contingente de $46.875 (18.75% anual), siempre que el subyacente cierre en o por encima del umbral de caída del 50% en la fecha de determinación correspondiente. Una característica de “memoria” permite pagar cupones atrasados si la condición se cumple en una fecha posterior.
Los valores pueden ser auto-llamados después del período inicial de seis meses sin opción de llamada, siempre que el precio de cierre de RH esté en o por encima del umbral de llamada del 100% en una fecha de observación trimestral. Si se llaman, los inversores reciben el valor nominal más el cupón actual (y cualquier cupón no pagado). Al vencimiento, los tenedores reciben (i) el valor nominal más los cupones adeudados si RH está en o por encima del umbral del 50%, o (ii) un valor en efectivo proporcional a la caída de RH si la acción ha caído por debajo de ese nivel, exponiendo a los inversores a una pérdida de principal de hasta el 100%.
Los valores son obligaciones no garantizadas y no subordinadas de UBS; el reembolso depende de la solvencia crediticia del banco. El valor inicial estimado es de $902.30–$932.30, lo que significa que los inversores pagan una prima sobre el valor teórico. Los valores no estarán listados y UBS/afiliados esperan recibir comisiones de venta del 2.50%. Los riesgos clave incluyen riesgo crediticio, restricciones de liquidez, exposición a una sola acción subyacente, posible rescate anticipado y tratamiento fiscal incierto en EE.UU.
UBS AG 런던 지점은 만기일이 2028년 7월 19일경인 Contingent Income Auto-Callable 증권을 마케팅하고 있으며, 이는 RH (티커: RH UN)의 보통주를 참조합니다. 각 $1,000 노트는 해당 결정일에 기초자산이 50% 하락 한계선 이상으로 마감될 경우 분기별 조건부 쿠폰 $46.875 (연 18.75%)를 제공합니다. “메모리” 기능은 조건이 이후 날짜에 충족되면 놓친 쿠폰을 상환합니다.
이 증권은 초기 6개월 비콜 기간 이후, RH 종가가 분기별 관측일에 100% 콜 한계선 이상일 경우 자동으로 콜될 수 있습니다. 콜될 경우 투자자는 원금과 현재 쿠폰(및 미지급 쿠폰)을 받습니다. 만기 시 보유자는 (i) RH가 50% 한계선 이상일 경우 원금과 미지급 쿠폰을 받거나, (ii) 주가가 그 수준 아래로 떨어진 경우 RH 하락에 비례한 현금 가치를 받으며 최대 100% 원금 손실 위험에 노출됩니다.
이 노트는 UBS의 무담보, 비후순위 채무이며 상환은 은행의 신용도에 달려 있습니다. 추정 초기 가치는 $902.30–$932.30으로, 투자자는 이론 가치 대비 프리미엄을 지불합니다. 이 노트는 상장되지 않으며 UBS 및 계열사는 2.50%의 판매 수수료를 받을 것으로 예상합니다. 주요 위험 요소로는 신용 위험, 유동성 제약, 단일 기초 주식에 대한 노출, 조기 상환 가능성, 미국 세금 처리 불확실성이 포함됩니다.
UBS AG succursale de Londres commercialise des titres Contingent Income Auto-Callable arrivant à échéance vers le 19 juillet 2028, référencés sur les actions ordinaires de RH (symbole : RH UN). Chaque note de 1 000 $ offre un coupon trimestriel conditionnel de 46,875 $ (18,75 % par an), à condition que le sous-jacent clôture à ou au-dessus du seuil de baisse de 50 % à la date de détermination pertinente. Une fonction « mémoire » permet de verser les coupons manqués si la condition est remplie à une date ultérieure.
Les titres peuvent être rappelés automatiquement après une période initiale de non-rappel de six mois, chaque fois que le cours de clôture de RH est égal ou supérieur au seuil de rappel de 100 % à une date d’observation trimestrielle. En cas de rappel, les investisseurs reçoivent la valeur nominale plus le coupon courant (et tous les coupons impayés). À l’échéance, les détenteurs reçoivent soit (i) la valeur nominale plus les coupons dus si RH est au-dessus du seuil de 50 %, soit (ii) une valeur en espèces proportionnelle à la baisse de RH si l’action est tombée en dessous de ce niveau, exposant les investisseurs à une perte en capital pouvant atteindre 100 %.
Les notes sont des obligations non garanties et non subordonnées d’UBS ; le remboursement dépend de la solvabilité de la banque. La valeur initiale estimée est comprise entre 902,30 $ et 932,30 $, ce qui signifie que les investisseurs paient une prime par rapport à la valeur théorique. Les notes ne seront pas cotées, et UBS/affiliés s’attendent à percevoir des commissions de vente de 2,50 %. Les principaux risques comprennent le risque de crédit, les contraintes de liquidité, l’exposition à une seule action sous-jacente, le remboursement anticipé potentiel et l’incertitude fiscale aux États-Unis.
UBS AG London Branch bietet Contingent Income Auto-Callable Securities mit Fälligkeit um den 19. Juli 2028 an, die sich auf die Stammaktien von RH (Ticker: RH UN) beziehen. Jede $1.000-Anleihe bietet einen vierteljährlichen bedingten Kupon von $46,875 (18,75 % p.a.), vorausgesetzt, der Basiswert schließt am relevanten Feststellungstag auf oder über der 50%-Abschwungschwelle. Eine „Memory“-Funktion zahlt verpasste Kupons nach, wenn die Bedingung zu einem späteren Zeitpunkt erfüllt wird.
Die Wertpapiere können nach der anfänglichen sechsmonatigen Nicht-Kündigungsfrist automatisch zurückgerufen werden, wenn der Schlusskurs von RH an einem quartalsweisen Beobachtungstag auf oder über der 100%-Call-Schwelle liegt. Im Falle eines Rückrufs erhalten Anleger den Nennwert plus den aktuellen Kupon (und alle ausstehenden Kupons). Bei Fälligkeit erhalten Inhaber entweder (i) den Nennwert plus fällige Kupons, sofern RH über der 50%-Schwelle liegt, oder (ii) einen Barausgleich proportional zum Kursrückgang von RH, falls die Aktie unter dieses Niveau gefallen ist, was ein Risiko eines Totalverlusts des Kapitals von bis zu 100 % birgt.
Die Anleihen sind ungesicherte, nicht nachrangige Verbindlichkeiten von UBS; die Rückzahlung hängt von der Bonität der Bank ab. Der geschätzte Anfangswert liegt bei $902,30–$932,30, was bedeutet, dass Anleger eine Prämie gegenüber dem theoretischen Wert zahlen. Die Anleihen werden nicht börslich gehandelt, und UBS/Tochtergesellschaften erwarten Verkaufsprovisionen von 2,50 %. Zu den wesentlichen Risiken zählen Kreditrisiko, Liquiditätsbeschränkungen, Konzentration auf eine einzelne Aktie, mögliche vorzeitige Rückzahlung und unsichere US-Steuerbehandlung.
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ISSUER FREE WRITING PROSPECTUS |
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Filed Pursuant to Rule 433 |
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Registration Statement No. 333-283672 |
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Dated July 8, 2025 |
Contingent Income Auto-Callable Securities with 6-Month Initial Non-Call Period and Memory Coupon due on or about July 19, 2028
Based on the Performance of the Common Stock of RH
This document provides a summary of the terms of the Contingent Income Auto-Callable Securities with 6-Month Initial Non-Call Period and Memory Coupon (the “securities”). Investors should carefully review the accompanying preliminary pricing supplement for the securities, the accompanying product supplement and the accompanying prospectus, as well as the “Risk Considerations” section below, before making an investment decision.
The securities do not guarantee any return of principal at maturity. Investors will not participate in any appreciation of the underlying equity and must be willing to accept the risk of not receiving any contingent payments over the term of the securities. The securities are unsubordinated, unsecured debt obligations issued by UBS AG (“UBS”), and all payments on the securities are subject to the credit risk of UBS. As used in this document, “we,” “us,” or “our” refers to UBS.
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SUMMARY TERMS |
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Issuer: |
UBS AG London Branch |
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Underlying equity: |
Common stock of RH (Bloomberg Ticker: “RH UN”) |
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Stated principal amount: |
$1,000.00 per security |
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Pricing date: |
Expected to be July 14, 2025 |
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Original issue date: |
Expected to be July 17, 2025 (3 business days after the pricing date; see preliminary pricing supplement). |
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Final determination date: |
Expected to be July 14, 2028, subject to postponement for certain market disruption events and as described in the accompanying product supplement. |
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Maturity date: |
Expected to be July 19, 2028, subject to postponement for certain market disruption events and as described in the accompanying product supplement. |
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Early redemption: |
If, on any determination date (other than the first determination date and the final determination date), the closing price of the underlying equity is equal to or greater than the call threshold level, the securities will be redeemed early and we will pay the early redemption amount on the first contingent payment date immediately following the related determination date. |
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Early redemption amount: |
The early redemption amount will be an amount equal to (i) the stated principal amount plus (ii) the contingent payment with respect to the related determination date and any previously unpaid contingent payments with respect to any previous determination dates pursuant to the memory coupon feature. |
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Contingent payment: |
▪If, on any determination date, the closing price or the final price is equal to or greater than the downside threshold level, we will pay a contingent payment of $46.875 (equivalent to 18.75% per annum of the stated principal amount) per security, plus any previously unpaid contingent payments with respect to any previous determination dates pursuant to the memory coupon feature, on the related contingent payment date. ▪If, on any determination date, the closing price or the final price is less than the downside threshold level, no contingent payment will be paid on the related contingent payment date. |
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Memory coupon feature: |
If a contingent payment is not paid on a contingent payment date (other than the maturity date) because the closing price of the underlying equity is less than the downside threshold level on the related determination date, such contingent payment will be paid on a later contingent payment date if the closing price of the underlying equity is equal to or greater than the downside threshold level on the determination date corresponding to the later contingent payment date. For the avoidance of doubt, once a previously unpaid contingent payment has been paid on a later contingent payment date, it will not be made again on any subsequent contingent payment date. If the closing price of the underlying equity is less than the downside threshold level on each of the specified determination dates, you will receive no contingent payments during the term of, and will not receive a positive return on, the securities. |
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Determination dates: |
Quarterly (as set forth on the cover of the preliminary pricing supplement), subject to postponement for non-trading days and certain market disruption events. |
|
Contingent payment dates: |
Quarterly (as set forth on the cover of the preliminary pricing supplement), subject to postponement for non-business days and certain market disruption events. |
|
Payment at maturity: |
▪If the final price is equal to or greater than the downside threshold level: (i) the stated principal amount plus (ii) the contingent payment otherwise payable with respect to the final determination date and any previously unpaid contingent payments with respect to any previous determination dates pursuant to the memory coupon feature ▪If the final price is less than the downside threshold level: the cash value UBS has elected to deliver to you cash in lieu of shares, and your payment at maturity for each security will be the cash value. If the final price is less than the downside threshold level, investors will lose a significant portion and may lose all of their initial investment. |
|
Exchange ratio: |
The quotient of the stated principal amount divided by the initial price. |
|
Cash value: |
The exchange ratio multiplied by the final price. |
|
Call threshold level: |
100.00% of the initial price. The actual call threshold level will be determined on the pricing date. |
|
Downside threshold level: |
50.00% of the initial price. The actual downside threshold level will be determined on the pricing date. |
|
Initial price: |
The closing price of the underlying equity on the pricing date. |
|
Final price: |
The closing price of the underlying equity on the final determination date. |
|
CUSIP / ISIN: |
90309KBZ6 / US90309KBZ66 |
|
Listing: |
The securities will not be listed or displayed on any securities exchange or any electronic communications network. |
|
Commission: |
2.50% of the aggregate principal amount. |
|
Estimated initial value: |
Expected to be between $902.30 and $932.30 per security. See “Risk Factors” in the preliminary pricing supplement. |
|
Preliminary pricing supplement: |
http://www.sec.gov/Archives/edgar/data/1114446/000183988225037713/ubs_424b2-20418.htm |
|
HYPOTHETICAL PAYOUT |
The below figures are based on a hypothetical downside threshold level of 50.00% of the hypothetical initial price of the underlying equity and are purely hypothetical (the actual terms of your security will be determined on the pricing date and will be specified in the final pricing supplement).
Hypothetical Payment at Maturity if No Early Redemption Occurs
|
Change in Underlying Equity |
Payment at Maturity (excluding any contingent payment payable at maturity) |
|
+50.00% |
$1,000.00 |
|
+40.00% |
$1,000.00 |
|
+30.00% |
$1,000.00 |
|
+20.00% |
$1,000.00 |
|
+10.00% |
$1,000.00 |
|
0.00% |
$1,000.00 |
|
-10.00% |
$1,000.00 |
|
-20.00% |
$1,000.00 |
|
-30.00% |
$1,000.00 |
|
-40.00% |
$1,000.00 |
|
-50.00% |
$1,000.00 |
|
-51.00% |
$490.00 |
|
-60.00% |
$400.00 |
|
-70.00% |
$300.00 |
|
-80.00% |
$200.00 |
|
-90.00% |
$100.00 |
|
-100.00% |
$0.00 |
A-1
You will find a link to the accompanying preliminary pricing supplement for the securities above and links to the accompanying product supplement and accompanying prospectus for the securities under “Additional Information About UBS and the Securities” in the preliminary pricing supplement, which you should read and understand prior to investing in the securities.
The issuer has filed a registration statement (including a prospectus as supplemented by a product supplement and the preliminary pricing supplement) with the Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the accompanying prospectus in that registration statement and the other documents the issuer has filed with the SEC, including the accompanying preliminary pricing supplement and the accompanying product supplement, for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-833-653-0401. Our Central Index Key, or CIK, on the SEC web site is 0001114446.
Risk Considerations
The risks set forth below are discussed in more detail in the “Risk Factors” section in the preliminary pricing supplement. Please review those risk factors carefully prior to making an investment decision.
Risks Relating to Return Characteristics
▪The securities do not guarantee the return of any principal and your investment in the securities may result in a loss.
▪The contingent payment, if any, is based solely on the closing prices of the underlying equity on the specified determination dates.
▪You may not receive any contingent payment with respect to the securities.
▪Higher contingent payments are generally associated with a greater risk of loss.
▪Early redemption risk.
▪Investors will not participate in any appreciation in the closing price of the underlying equity and will not have the same rights as holders of the underlying equity.
Risks Relating to Characteristics of the Underlying Equity
▪Single equity risk.
▪There can be no assurance that the investment view implicit in the securities will be successful.
▪No affiliation with the underlying equity issuer.
Estimated Value Considerations
▪The issue price you pay for the securities will exceed their estimated initial value.
▪The estimated initial value is a theoretical price and the actual price that you may be able to sell your securities in any secondary market (if any) at any time after the pricing date may differ from the estimated initial value.
▪Our actual profits may be greater or less than the differential between the estimated initial value and the issue price of the securities as of the pricing date.
Risks Relating to Liquidity and Secondary Market Price Considerations
▪There may be little or no secondary market for the securities.
▪The price at which UBS Securities LLC and its affiliates may offer to buy the securities in the secondary market (if any) may be greater than UBS’ valuation of the securities at that time, greater than any other secondary market prices provided by unaffiliated dealers (if any) and, depending on your broker, greater than the valuation provided on your customer account statements.
▪Price of securities prior to maturity.
▪Impact of fees and the use of internal funding rates rather than secondary market credit spreads on secondary market prices.
Risks Relating to Hedging Activities and Conflicts of Interest
▪Potential conflicts of interest.
▪Hedging and trading activities by the calculation agent and its affiliates could potentially affect the value of, and any amounts payable on, the securities.
▪We may engage in business with or involving the underlying equity issuer without regard to your interests.
▪Potential UBS impact on an underlying equity.
▪Following certain events, the calculation agent can make adjustments to the underlying equity and terms of the securities that may adversely affect the market value of, and return on, the securities.
Risks Relating to General Credit Characteristics
▪The securities are subject to the credit risk of UBS, and any actual or anticipated changes to our credit ratings or credit spreads may adversely affect the market value of the securities.
▪The securities are not bank deposits.
▪If UBS experiences financial difficulties, FINMA has the power to open restructuring or liquidation proceedings in respect of, and/or impose protective measures in relation to, UBS, which proceedings or measures may have a material adverse effect on the terms and market value of the securities and/or the ability of UBS to make payments thereunder.
Risks Relating to U.S. Federal Income Taxation
▪Uncertain tax treatment. Significant aspects of the tax treatment of the securities are uncertain. You should consult your tax advisor about your tax situation. See “Tax Considerations” in the preliminary pricing supplement and “Material U.S. Federal Income Tax Consequences”, including the section “— Securities Treated as Prepaid Derivatives or Prepaid Forwards with Associated Contingent Coupons”, in the accompanying product supplement.
Underlying Equity
For information about the underlying equity, including historical performance information, see “Information About the Underlying Equity” in the preliminary pricing supplement.
A-2
FAQ
What coupon do the UBS Contingent Income Auto-Callable Securities pay?
Under what conditions will the UBS notes be auto-called?
How much principal protection do the notes offer?
What is the estimated initial value of the securities?
Are the securities listed on an exchange?
Who bears credit risk in this investment?
