[FWP] ETRACS Whitney US Critical Technologies ETN Free Writing Prospectus
UBS AG London Branch is marketing Contingent Income Auto-Callable Securities due 7 July 2028, linked to the common stock of Microsoft Corp. (MSFT). Each $1,000 note can pay a quarterly contingent coupon of $22.625 (9.05% p.a.) whenever the closing price of MSFT on the relevant determination date is at or above the 80% downside threshold. If, on any quarterly observation (other than the final one), MSFT closes at or above its 100% call threshold (the initial price), UBS will redeem the notes early at par plus the coupon.
At maturity, investors receive: (i) $1,000 + final coupon if MSFT is ≥ 80% of the initial price, or (ii) cash value equal to MSFT’s percentage decline beyond the 20% buffer if the stock finishes below the threshold—potentially resulting in total loss of principal. Holders do not participate in any upside beyond coupons.
Key economic terms include a 3-year tenor (pricing 3 Jul 2025, maturity 7 Jul 2028), estimated initial value of $941.60–$971.60 (94.16–97.16% of par), and a 2.25% selling concession. The securities are unsecured, unsubordinated UBS obligations, not listed on any exchange, and may face limited secondary liquidity.
Principal risks highlighted in the FWP include: loss of principal below the threshold, absence of upside participation, issuer credit risk, uncertain tax treatment, potential conflicts of interest in hedging, valuation discounts versus issue price, and the possibility of little or no secondary market.
UBS AG London Branch propone titoli Contingent Income Auto-Callable con scadenza il 7 luglio 2028, collegati alle azioni ordinarie di Microsoft Corp. (MSFT). Ogni titolo da $1.000 può corrispondere un coupon trimestrale condizionato di $22,625 (9,05% annuo) se il prezzo di chiusura di MSFT alla data di rilevazione è pari o superiore alla soglia di ribasso dell'80%. In caso di chiusura trimestrale (eccetto l’ultima) pari o superiore alla soglia di richiamo del 100% (prezzo iniziale), UBS procederà al rimborso anticipato del titolo a valore nominale più coupon.
Alla scadenza, gli investitori riceveranno: (i) $1.000 più l’ultimo coupon se MSFT è ≥ 80% del prezzo iniziale, oppure (ii) un valore in contanti proporzionale al calo percentuale di MSFT oltre la soglia del 20% se il titolo chiude sotto la soglia, con possibile perdita totale del capitale. I detentori non partecipano ad eventuali rialzi oltre i coupon.
I termini economici principali includono un orizzonte di 3 anni (prezzo al 3 luglio 2025, scadenza 7 luglio 2028), un valore iniziale stimato tra $941,60 e $971,60 (94,16–97,16% del valore nominale) e una commissione di vendita del 2,25%. I titoli sono obbligazioni UBS non garantite e non subordinate, non quotate in borsa, con possibile liquidità secondaria limitata.
I rischi principali evidenziati nel FWP includono: perdita del capitale sotto la soglia, assenza di partecipazione ai rialzi, rischio di credito dell’emittente, trattamento fiscale incerto, potenziali conflitti di interesse nelle coperture, sconti di valutazione rispetto al prezzo di emissione e possibile assenza o scarsità di mercato secondario.
UBS AG London Branch está comercializando valores Contingent Income Auto-Callable con vencimiento el 7 de julio de 2028, vinculados a las acciones ordinarias de Microsoft Corp. (MSFT). Cada nota de $1,000 puede pagar un cupón trimestral contingente de $22.625 (9.05% anual) cuando el precio de cierre de MSFT en la fecha de determinación sea igual o superior al umbral de caída del 80%. Si en cualquier observación trimestral (excepto la final) MSFT cierra igual o por encima del umbral de llamado del 100% (precio inicial), UBS redimirá anticipadamente las notas al valor nominal más el cupón.
Al vencimiento, los inversores recibirán: (i) $1,000 más el cupón final si MSFT está ≥ 80% del precio inicial, o (ii) un valor en efectivo proporcional a la caída porcentual de MSFT más allá del 20% si la acción termina por debajo del umbral, lo que puede resultar en una pérdida total del capital. Los tenedores no participan en ninguna ganancia más allá de los cupones.
Los términos económicos clave incluyen un plazo de 3 años (precio al 3 de julio de 2025, vencimiento 7 de julio de 2028), un valor inicial estimado entre $941.60 y $971.60 (94.16–97.16% del valor nominal) y una comisión de venta del 2.25%. Los valores son obligaciones no garantizadas y no subordinadas de UBS, no cotizadas en bolsa y con posible liquidez secundaria limitada.
Los principales riesgos destacados en el FWP incluyen: pérdida de capital bajo el umbral, ausencia de participación en ganancias, riesgo crediticio del emisor, tratamiento fiscal incierto, posibles conflictos de interés en la cobertura, descuentos de valoración respecto al precio de emisión y la posibilidad de poco o ningún mercado secundario.
UBS AG 런던 지점은 2028년 7월 7일 만기인 컨틴전트 인컴 오토콜러블 증권을 마이크로소프트(MSFT) 보통주에 연계하여 판매하고 있습니다. 각 $1,000 노트는 분기별로 MSFT 종가가 80% 하락 한계선 이상일 경우 분기별 조건부 쿠폰 $22.625 (연 9.05%)를 지급합니다. 만기 전 분기 관찰일 중 MSFT가 100% 콜 한계선(초기 가격) 이상으로 마감하면 UBS는 원금과 쿠폰을 포함하여 조기 상환합니다.
만기 시 투자자는 (i) MSFT가 초기 가격의 80% 이상이면 $1,000 + 최종 쿠폰을 받거나, (ii) 주가가 기준선 아래일 경우 20% 완충 구간을 넘는 하락분에 해당하는 현금 가치를 받게 되어 원금 전액 손실이 발생할 수 있습니다. 투자자는 쿠폰 외 상승 수익에 참여하지 않습니다.
주요 조건은 3년 만기(2025년 7월 3일 가격 산정, 2028년 7월 7일 만기), 추정 초기 가치 $941.60~$971.60 (액면가의 94.16~97.16%), 2.25% 판매 수수료입니다. 이 증권은 무담보, 무후순위 UBS 채무이며, 거래소 상장되지 않고 2차 시장 유동성이 제한적일 수 있습니다.
주요 위험요인으로는 기준선 이하에서의 원금 손실, 상승 참여 부재, 발행자 신용 위험, 세금 처리 불확실성, 헤지 관련 이해 상충 가능성, 발행가 대비 평가 절하, 2차 시장 부재 또는 유동성 부족 등이 FWP에 명시되어 있습니다.
UBS AG succursale de Londres commercialise des titres Contingent Income Auto-Callable arrivant à échéance le 7 juillet 2028, liés aux actions ordinaires de Microsoft Corp. (MSFT). Chaque note de 1 000 $ peut verser un coupon trimestriel conditionnel de 22,625 $ (9,05 % par an) lorsque le cours de clôture de MSFT à la date de détermination est égal ou supérieur au seuil de baisse de 80 %. Si, lors de toute observation trimestrielle (sauf la dernière), MSFT clôture au-dessus du seuil de call à 100 % (prix initial), UBS procédera au remboursement anticipé des notes à leur valeur nominale plus coupon.
À l’échéance, les investisseurs recevront : (i) 1 000 $ plus le coupon final si MSFT est ≥ 80 % du prix initial, ou (ii) une valeur en espèces correspondant à la baisse en pourcentage de MSFT au-delà de la marge de 20 % si l’action termine en dessous du seuil, ce qui peut entraîner une perte totale du capital. Les détenteurs ne participent pas à une éventuelle hausse au-delà des coupons.
Les principaux termes économiques comprennent une durée de 3 ans (prix au 3 juillet 2025, échéance 7 juillet 2028), une valeur initiale estimée entre 941,60 $ et 971,60 $ (94,16–97,16 % du pair) et une commission de vente de 2,25 %. Ces titres sont des obligations UBS non sécurisées et non subordonnées, non cotées en bourse, avec une liquidité secondaire potentiellement limitée.
Les principaux risques mentionnés dans le FWP incluent : la perte de capital sous le seuil, l’absence de participation à la hausse, le risque de crédit de l’émetteur, un traitement fiscal incertain, des conflits d’intérêts potentiels dans la couverture, des décotes de valorisation par rapport au prix d’émission, et la possibilité d’un marché secondaire faible ou inexistant.
UBS AG London Branch bietet Contingent Income Auto-Callable Securities mit Fälligkeit am 7. Juli 2028 an, die an die Stammaktien von Microsoft Corp. (MSFT) gekoppelt sind. Jede $1.000-Anleihe kann eine vierteljährliche bedingte Kuponzahlung von $22,625 (9,05% p.a.) leisten, sofern der Schlusskurs von MSFT am jeweiligen Beobachtungstag mindestens der 80%-Abschwung-Schwelle entspricht. Schließt MSFT an einem beliebigen Quartalsbeobachtungstag (außer dem letzten) auf oder über der 100%-Call-Schwelle (Ausgangspreis), wird UBS die Anleihen vorzeitig zum Nennwert plus Kupon zurückzahlen.
Bei Fälligkeit erhalten Anleger: (i) $1.000 plus den letzten Kupon, wenn MSFT ≥ 80% des Anfangspreises ist, oder (ii) einen Barwert entsprechend dem prozentualen Kursrückgang von MSFT über die 20%-Pufferzone hinaus, falls die Aktie unterhalb der Schwelle schließt – was zu einem totalen Kapitalverlust führen kann. Inhaber partizipieren nicht an Kurssteigerungen über die Kupons hinaus.
Wesentliche wirtschaftliche Bedingungen umfassen eine 3-jährige Laufzeit (Preisfeststellung 3. Juli 2025, Fälligkeit 7. Juli 2028), einen geschätzten Anfangswert von $941,60–$971,60 (94,16–97,16% des Nennwerts) und eine Verkaufsprovision von 2,25%. Die Wertpapiere sind ungesicherte, nicht nachrangige UBS-Verpflichtungen, nicht an einer Börse notiert und können eine begrenzte Sekundärliquidität aufweisen.
Die im FWP hervorgehobenen Hauptrisiken umfassen: Kapitalverlust unterhalb der Schwelle, fehlende Aufwärtsbeteiligung, Emittenten-Kreditrisiko, unsichere steuerliche Behandlung, potenzielle Interessenkonflikte bei Absicherungen, Bewertungsabschläge gegenüber dem Ausgabepreis sowie die Möglichkeit eines eingeschränkten oder nicht vorhandenen Sekundärmarkts.
- 9.05% contingent annual coupon offers above-market income if Microsoft trades ≥ 80% of initial price on observation dates.
- 20% downside buffer provides limited protection against moderate equity declines before principal is eroded.
- Quarterly auto-call feature can accelerate return of capital and enhance annualized yield if MSFT closes ≥ 100% of initial price.
- No principal protection; investors bear 1-for-1 losses below the 80% threshold, potentially losing entire investment.
- No participation in upside; returns are capped at coupon payments regardless of Microsoft share appreciation.
- Issuer credit risk; payments depend on UBS AG’s ability to pay its senior unsecured obligations.
- Limited liquidity & estimated value below par (94.16–97.16%) may lead to mark-to-market losses if sold before maturity.
- Uncertain U.S. tax treatment increases reporting complexity and potential after-tax yield variability.
Insights
TL;DR Structured note pays 9.05% if MSFT stays above 80%; upside capped, principal at risk, UBS credit & liquidity key—overall neutral impact.
UBS offers a short-dated (<3 yrs) auto-callable with a competitive 9.05% contingent coupon and a 20% soft protection barrier. For income-oriented investors comfortable with Microsoft equity risk, the structure supplies attractive carry versus traditional fixed income. However, upside is capped at coupon level, and linear downside below the barrier can fully exhaust capital. The $941–$972 estimated value indicates a 3–6% initial mark-up plus the 2.25% commission, meaning investors start below par. Liquidity is dealer-driven only, and resale levels may reflect UBS’s internal models rather than open-market pricing. UBS’s senior unsecured credit profile (A-/Aa3) mitigates but does not eliminate issuer risk. Overall, the note is a yield enhancement tool best suited for sophisticated investors; from a market-moving standpoint it is routine issuance and therefore neutral.
UBS AG London Branch propone titoli Contingent Income Auto-Callable con scadenza il 7 luglio 2028, collegati alle azioni ordinarie di Microsoft Corp. (MSFT). Ogni titolo da $1.000 può corrispondere un coupon trimestrale condizionato di $22,625 (9,05% annuo) se il prezzo di chiusura di MSFT alla data di rilevazione è pari o superiore alla soglia di ribasso dell'80%. In caso di chiusura trimestrale (eccetto l’ultima) pari o superiore alla soglia di richiamo del 100% (prezzo iniziale), UBS procederà al rimborso anticipato del titolo a valore nominale più coupon.
Alla scadenza, gli investitori riceveranno: (i) $1.000 più l’ultimo coupon se MSFT è ≥ 80% del prezzo iniziale, oppure (ii) un valore in contanti proporzionale al calo percentuale di MSFT oltre la soglia del 20% se il titolo chiude sotto la soglia, con possibile perdita totale del capitale. I detentori non partecipano ad eventuali rialzi oltre i coupon.
I termini economici principali includono un orizzonte di 3 anni (prezzo al 3 luglio 2025, scadenza 7 luglio 2028), un valore iniziale stimato tra $941,60 e $971,60 (94,16–97,16% del valore nominale) e una commissione di vendita del 2,25%. I titoli sono obbligazioni UBS non garantite e non subordinate, non quotate in borsa, con possibile liquidità secondaria limitata.
I rischi principali evidenziati nel FWP includono: perdita del capitale sotto la soglia, assenza di partecipazione ai rialzi, rischio di credito dell’emittente, trattamento fiscale incerto, potenziali conflitti di interesse nelle coperture, sconti di valutazione rispetto al prezzo di emissione e possibile assenza o scarsità di mercato secondario.
UBS AG London Branch está comercializando valores Contingent Income Auto-Callable con vencimiento el 7 de julio de 2028, vinculados a las acciones ordinarias de Microsoft Corp. (MSFT). Cada nota de $1,000 puede pagar un cupón trimestral contingente de $22.625 (9.05% anual) cuando el precio de cierre de MSFT en la fecha de determinación sea igual o superior al umbral de caída del 80%. Si en cualquier observación trimestral (excepto la final) MSFT cierra igual o por encima del umbral de llamado del 100% (precio inicial), UBS redimirá anticipadamente las notas al valor nominal más el cupón.
Al vencimiento, los inversores recibirán: (i) $1,000 más el cupón final si MSFT está ≥ 80% del precio inicial, o (ii) un valor en efectivo proporcional a la caída porcentual de MSFT más allá del 20% si la acción termina por debajo del umbral, lo que puede resultar en una pérdida total del capital. Los tenedores no participan en ninguna ganancia más allá de los cupones.
Los términos económicos clave incluyen un plazo de 3 años (precio al 3 de julio de 2025, vencimiento 7 de julio de 2028), un valor inicial estimado entre $941.60 y $971.60 (94.16–97.16% del valor nominal) y una comisión de venta del 2.25%. Los valores son obligaciones no garantizadas y no subordinadas de UBS, no cotizadas en bolsa y con posible liquidez secundaria limitada.
Los principales riesgos destacados en el FWP incluyen: pérdida de capital bajo el umbral, ausencia de participación en ganancias, riesgo crediticio del emisor, tratamiento fiscal incierto, posibles conflictos de interés en la cobertura, descuentos de valoración respecto al precio de emisión y la posibilidad de poco o ningún mercado secundario.
UBS AG 런던 지점은 2028년 7월 7일 만기인 컨틴전트 인컴 오토콜러블 증권을 마이크로소프트(MSFT) 보통주에 연계하여 판매하고 있습니다. 각 $1,000 노트는 분기별로 MSFT 종가가 80% 하락 한계선 이상일 경우 분기별 조건부 쿠폰 $22.625 (연 9.05%)를 지급합니다. 만기 전 분기 관찰일 중 MSFT가 100% 콜 한계선(초기 가격) 이상으로 마감하면 UBS는 원금과 쿠폰을 포함하여 조기 상환합니다.
만기 시 투자자는 (i) MSFT가 초기 가격의 80% 이상이면 $1,000 + 최종 쿠폰을 받거나, (ii) 주가가 기준선 아래일 경우 20% 완충 구간을 넘는 하락분에 해당하는 현금 가치를 받게 되어 원금 전액 손실이 발생할 수 있습니다. 투자자는 쿠폰 외 상승 수익에 참여하지 않습니다.
주요 조건은 3년 만기(2025년 7월 3일 가격 산정, 2028년 7월 7일 만기), 추정 초기 가치 $941.60~$971.60 (액면가의 94.16~97.16%), 2.25% 판매 수수료입니다. 이 증권은 무담보, 무후순위 UBS 채무이며, 거래소 상장되지 않고 2차 시장 유동성이 제한적일 수 있습니다.
주요 위험요인으로는 기준선 이하에서의 원금 손실, 상승 참여 부재, 발행자 신용 위험, 세금 처리 불확실성, 헤지 관련 이해 상충 가능성, 발행가 대비 평가 절하, 2차 시장 부재 또는 유동성 부족 등이 FWP에 명시되어 있습니다.
UBS AG succursale de Londres commercialise des titres Contingent Income Auto-Callable arrivant à échéance le 7 juillet 2028, liés aux actions ordinaires de Microsoft Corp. (MSFT). Chaque note de 1 000 $ peut verser un coupon trimestriel conditionnel de 22,625 $ (9,05 % par an) lorsque le cours de clôture de MSFT à la date de détermination est égal ou supérieur au seuil de baisse de 80 %. Si, lors de toute observation trimestrielle (sauf la dernière), MSFT clôture au-dessus du seuil de call à 100 % (prix initial), UBS procédera au remboursement anticipé des notes à leur valeur nominale plus coupon.
À l’échéance, les investisseurs recevront : (i) 1 000 $ plus le coupon final si MSFT est ≥ 80 % du prix initial, ou (ii) une valeur en espèces correspondant à la baisse en pourcentage de MSFT au-delà de la marge de 20 % si l’action termine en dessous du seuil, ce qui peut entraîner une perte totale du capital. Les détenteurs ne participent pas à une éventuelle hausse au-delà des coupons.
Les principaux termes économiques comprennent une durée de 3 ans (prix au 3 juillet 2025, échéance 7 juillet 2028), une valeur initiale estimée entre 941,60 $ et 971,60 $ (94,16–97,16 % du pair) et une commission de vente de 2,25 %. Ces titres sont des obligations UBS non sécurisées et non subordonnées, non cotées en bourse, avec une liquidité secondaire potentiellement limitée.
Les principaux risques mentionnés dans le FWP incluent : la perte de capital sous le seuil, l’absence de participation à la hausse, le risque de crédit de l’émetteur, un traitement fiscal incertain, des conflits d’intérêts potentiels dans la couverture, des décotes de valorisation par rapport au prix d’émission, et la possibilité d’un marché secondaire faible ou inexistant.
UBS AG London Branch bietet Contingent Income Auto-Callable Securities mit Fälligkeit am 7. Juli 2028 an, die an die Stammaktien von Microsoft Corp. (MSFT) gekoppelt sind. Jede $1.000-Anleihe kann eine vierteljährliche bedingte Kuponzahlung von $22,625 (9,05% p.a.) leisten, sofern der Schlusskurs von MSFT am jeweiligen Beobachtungstag mindestens der 80%-Abschwung-Schwelle entspricht. Schließt MSFT an einem beliebigen Quartalsbeobachtungstag (außer dem letzten) auf oder über der 100%-Call-Schwelle (Ausgangspreis), wird UBS die Anleihen vorzeitig zum Nennwert plus Kupon zurückzahlen.
Bei Fälligkeit erhalten Anleger: (i) $1.000 plus den letzten Kupon, wenn MSFT ≥ 80% des Anfangspreises ist, oder (ii) einen Barwert entsprechend dem prozentualen Kursrückgang von MSFT über die 20%-Pufferzone hinaus, falls die Aktie unterhalb der Schwelle schließt – was zu einem totalen Kapitalverlust führen kann. Inhaber partizipieren nicht an Kurssteigerungen über die Kupons hinaus.
Wesentliche wirtschaftliche Bedingungen umfassen eine 3-jährige Laufzeit (Preisfeststellung 3. Juli 2025, Fälligkeit 7. Juli 2028), einen geschätzten Anfangswert von $941,60–$971,60 (94,16–97,16% des Nennwerts) und eine Verkaufsprovision von 2,25%. Die Wertpapiere sind ungesicherte, nicht nachrangige UBS-Verpflichtungen, nicht an einer Börse notiert und können eine begrenzte Sekundärliquidität aufweisen.
Die im FWP hervorgehobenen Hauptrisiken umfassen: Kapitalverlust unterhalb der Schwelle, fehlende Aufwärtsbeteiligung, Emittenten-Kreditrisiko, unsichere steuerliche Behandlung, potenzielle Interessenkonflikte bei Absicherungen, Bewertungsabschläge gegenüber dem Ausgabepreis sowie die Möglichkeit eines eingeschränkten oder nicht vorhandenen Sekundärmarkts.
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ISSUER FREE WRITING PROSPECTUS Filed Pursuant to Rule 433 Registration Statement No. 333-283672 Dated June 26, 2025 |
Contingent Income Auto-Callable Securities due on or about July 7, 2028
Based on the Performance of the Common Stock of Microsoft Corporation
This document provides a summary of the terms of the Contingent Income Auto-Callable Securities (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 Microsoft Corporation (Bloomberg Ticker: “MSFT UW”) |
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Stated principal amount: |
$1,000.00 per security |
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Pricing date: |
Expected to be July 3, 2025 |
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Original issue date: |
Expected to be July 9, 2025 (3 business days after the pricing date; see preliminary pricing supplement). |
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Final determination date: |
Expected to be July 3, 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 7, 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 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. |
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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 $22.625 (equivalent to 9.05% per annum of the stated principal amount) per security 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 made with respect to that determination date. |
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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. |
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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. |
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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 with respect to the final determination date ▪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. |
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Exchange ratio: |
The quotient of the stated principal amount divided by the initial price. |
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Cash value: |
The exchange ratio multiplied by the final price. |
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Call threshold level: |
100.00% of the initial price. The actual call threshold level will be determined on the pricing date. |
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Downside threshold level: |
80.00% of the initial price. The actual downside threshold level will be determined on the pricing date. |
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Initial price: |
The closing price of the underlying equity on the pricing date. |
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Final price: |
The closing price of the underlying equity on the final determination date. |
|
CUSIP / ISIN: |
90308V6Q9 / US90308V6Q90 |
|
Listing: |
The securities will not be listed or displayed on any securities exchange or any electronic communications network. |
|
Commission: |
2.25% of the aggregate principal amount. |
|
Estimated initial value: |
Expected to be between $941.60 and $971.60 per security. See “Risk Factors” in the preliminary pricing supplement. |
|
Preliminary pricing supplement: |
http://www.sec.gov/Archives/edgar/data/1114446/000183988225034917/ubs_424b2-18991.htm |
|
HYPOTHETICAL PAYOUT |
The below figures are based on a hypothetical downside threshold level of 80.00% 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 |
|
-21.00% |
$790.00 |
|
-30.00% |
$700.00 |
|
-40.00% |
$600.00 |
|
-50.00% |
$500.00 |
|
-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 will not receive any contingent payment for any period where the closing price of the underlying equity on the determination date is less than the downside threshold level.
▪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 rate do the UBS Auto-Callable Securities offer?
How does early redemption work on these UBS notes?
What happens if Microsoft stock falls below 80% of its initial price at maturity?
Is the principal protected on these securities?
Why is the estimated initial value below $1,000?
Will these securities be listed on an exchange?
