[FWP] ETRACS Whitney US Critical Technologies ETN Free Writing Prospectus
UBS AG London Branch is offering Contingent Income Auto-Callable Securities linked to the common stock of Citigroup Inc. (ticker “C UN”). The notes have a $1,000 denomination, are expected to price on 3 July 2025 and mature on 7 July 2028, unless called earlier.
The product pays a quarterly contingent coupon of $26.625 (10.65% p.a.) only if Citigroup’s closing share price on a determination date is at or above the 70% downside threshold. Should the price meet or exceed the 100% call threshold on any quarterly date, UBS will redeem the notes early at par plus the coupon. Investors receive no participation in upside; principal is protected only if the final price is at or above the threshold. If the final price falls below 70% of the initial level, repayment equals the share performance (cash-settled), exposing holders to losses up to 100% of principal.
The securities are unsecured, unsubordinated obligations of UBS; all payments are subject to the issuer’s credit risk. Estimated initial value is $940–$970, implying a 3–6% issuance premium over fair value, and the notes will not be listed on any exchange. Up-front selling concession is 2.25% of principal.
Key risks highlighted include: potential loss of principal, coupon discontinuation if the threshold is breached, early-call reinvestment risk, limited liquidity, valuation discounts in secondary trading, uncertain tax treatment, and UBS credit exposure (including possible FINMA-mandated bail-in or restructuring).
UBS AG London Branch offre Titoli Auto-Richiamabili a Reddito Contingente collegati alle azioni ordinarie di Citigroup Inc. (simbolo “C UN”). I titoli hanno un taglio nominale di $1.000, con prezzo previsto il 3 luglio 2025 e scadenza il 7 luglio 2028, salvo richiamo anticipato.
Il prodotto paga un coupon trimestrale contingente di $26,625 (10,65% annuo) solo se il prezzo di chiusura delle azioni Citigroup alla data di determinazione è pari o superiore alla soglia di ribasso del 70%. Se il prezzo raggiunge o supera la soglia di richiamo al 100% in una qualsiasi data trimestrale, UBS richiamerà anticipatamente i titoli al valore nominale più il coupon. Gli investitori non partecipano all’apprezzamento del titolo; il capitale è protetto solo se il prezzo finale è pari o superiore alla soglia. Se il prezzo finale scende sotto il 70% del livello iniziale, il rimborso sarà legato alla performance azionaria (liquidazione in contanti), esponendo gli investitori a perdite fino al 100% del capitale.
I titoli sono obbligazioni non garantite e non subordinate di UBS; tutti i pagamenti sono soggetti al rischio di credito dell’emittente. Il valore iniziale stimato è tra $940 e $970, implicando un premio di emissione del 3-6% rispetto al valore equo, e i titoli non saranno quotati in alcun mercato. La commissione di vendita anticipata è del 2,25% del capitale.
I principali rischi evidenziati includono: possibile perdita del capitale, sospensione del coupon se la soglia viene violata, rischio di reinvestimento in caso di richiamo anticipato, liquidità limitata, sconti di valutazione nel mercato secondario, trattamento fiscale incerto e rischio di credito UBS (inclusi potenziali interventi FINMA come bail-in o ristrutturazioni).
UBS AG London Branch ofrece Valores Auto-llamables con Ingresos Contingentes vinculados a las acciones ordinarias de Citigroup Inc. (símbolo “C UN”). Los bonos tienen un valor nominal de $1,000, se espera que se fijen el 3 de julio de 2025 y venzan el 7 de julio de 2028, salvo que se llamen anticipadamente.
El producto paga un cupón trimestral contingente de $26.625 (10.65% anual) solo si el precio de cierre de las acciones de Citigroup en la fecha de determinación está en o por encima del umbral de caída del 70%. Si el precio alcanza o supera el umbral de llamada del 100% en cualquier fecha trimestral, UBS redimirá los bonos anticipadamente al valor nominal más el cupón. Los inversores no participan en la subida; el principal está protegido solo si el precio final está en o por encima del umbral. Si el precio final cae por debajo del 70% del nivel inicial, el reembolso será igual al rendimiento de la acción (liquidado en efectivo), exponiendo a los tenedores a pérdidas de hasta el 100% del principal.
Los valores son obligaciones no garantizadas y no subordinadas de UBS; todos los pagos están sujetos al riesgo crediticio del emisor. El valor inicial estimado es entre $940 y $970, lo que implica una prima de emisión del 3-6% sobre el valor justo, y los bonos no estarán listados en ninguna bolsa. La comisión inicial de venta es del 2.25% del principal.
Los riesgos clave destacados incluyen: posible pérdida del principal, suspensión del cupón si se supera el umbral, riesgo de reinversión por llamada anticipada, liquidez limitada, descuentos de valoración en el mercado secundario, tratamiento fiscal incierto y exposición crediticia a UBS (incluyendo posibles rescates o reestructuraciones ordenadas por FINMA).
UBS AG 런던 지점은 Citigroup Inc. (티커 “C UN”)의 보통주와 연계된 조건부 소득 자동 상환 증권을 제공합니다. 이 증권은 $1,000 액면가이며, 2025년 7월 3일에 가격이 책정되고 2028년 7월 7일에 만기되며, 조기 상환되지 않는 한 만기됩니다.
이 상품은 분기별로 $26.625 (연 10.65%)의 조건부 쿠폰을 지급하며, 이는 결정일에 Citigroup의 종가가 70% 하락 한계선 이상일 때만 지급됩니다. 만약 분기 중 어느 날에 100% 조기상환 한계선에 도달하거나 초과하면 UBS는 액면가와 쿠폰을 더한 금액으로 조기 상환합니다. 투자자는 상승에 대한 참여가 없으며, 최종 가격이 한계선 이상일 때만 원금이 보호됩니다. 최종 가격이 초기 가격의 70% 미만으로 떨어지면 주가 성과에 따라 상환되며(현금 결제), 투자자는 최대 100% 원금 손실 위험에 노출됩니다.
이 증권은 UBS의 무담보, 비후순위 채무이며, 모든 지급은 발행자의 신용 위험에 따릅니다. 예상 초기 가치는 $940~$970로 공정 가치 대비 3~6% 발행 프리미엄이 포함되며, 증권은 어떤 거래소에도 상장되지 않습니다. 선취 판매 수수료는 원금의 2.25%입니다.
주요 위험으로는 원금 손실 가능성, 한계선 위반 시 쿠폰 중단, 조기 상환 시 재투자 위험, 제한된 유동성, 2차 시장 평가 할인, 불확실한 세금 처리, UBS 신용 위험(금융감독원(FINMA) 명령에 따른 강제 구조조정 포함)이 있습니다.
UBS AG London Branch propose des titres à revenu conditionnel auto-remboursables liés aux actions ordinaires de Citigroup Inc. (symbole « C UN »). Les titres ont une valeur nominale de 1 000 $, devraient être prix le 3 juillet 2025 et arriver à échéance le 7 juillet 2028, sauf rappel anticipé.
Le produit verse un coupon trimestriel conditionnel de 26,625 $ (10,65 % par an) uniquement si le cours de clôture de Citigroup à la date de détermination est au moins égal au seuil de baisse de 70 %. Si le cours atteint ou dépasse le seuil de rappel à 100 % à une date trimestrielle, UBS procédera au remboursement anticipé au pair plus coupon. Les investisseurs ne bénéficient d’aucune participation à la hausse ; le capital est protégé uniquement si le cours final est au-dessus du seuil. Si le cours final est inférieur à 70 % du niveau initial, le remboursement correspond à la performance de l’action (règlement en espèces), exposant les détenteurs à une perte pouvant aller jusqu’à 100 % du capital.
Les titres sont des obligations non garanties et non subordonnées d’UBS ; tous les paiements sont soumis au risque de crédit de l’émetteur. La valeur initiale estimée se situe entre 940 $ et 970 $, impliquant une prime d’émission de 3 à 6 % par rapport à la juste valeur, et les titres ne seront pas cotés sur aucune bourse. La commission initiale de vente est de 2,25 % du principal.
Les risques clés mentionnés incluent : risque de perte en capital, suspension du coupon si le seuil est franchi, risque de réinvestissement en cas de rappel anticipé, liquidité limitée, décotes en cas de revente sur le marché secondaire, traitement fiscal incertain, et exposition au risque de crédit UBS (y compris possibilité de bail-in ou restructuration imposée par la FINMA).
UBS AG London Branch bietet Contingent Income Auto-Callable Securities, die an die Stammaktien von Citigroup Inc. (Ticker „C UN“) gekoppelt sind. Die Schuldverschreibungen haben einen Nennwert von 1.000 $, sollen am 3. Juli 2025 bepreist werden und am 7. Juli 2028 fällig sein, sofern sie nicht vorher eingelöst werden.
Das Produkt zahlt einen vierteljährlichen bedingten Kupon von 26,625 $ (10,65 % p.a.) nur, wenn der Schlusskurs der Citigroup-Aktie am Bewertungstag auf oder über der 70 % Abwärtsgrenze liegt. Sollte der Kurs an einem Quartalstermin die 100 % Rückzahlungsgrenze erreichen oder überschreiten, wird UBS die Schuldverschreibungen vorzeitig zum Nennwert zuzüglich Kupon zurückzahlen. Anleger erhalten keine Beteiligung an Kurssteigerungen; der Kapitalbetrag ist nur geschützt, wenn der Endkurs auf oder über der Schwelle liegt. Fällt der Endkurs unter 70 % des Anfangsniveaus, erfolgt die Rückzahlung entsprechend der Aktienperformance (bar abgerechnet), wodurch Verluste bis zu 100 % des Kapitals möglich sind.
Die Wertpapiere sind ungesicherte, nicht nachrangige Verbindlichkeiten von UBS; alle Zahlungen unterliegen dem Kreditrisiko des Emittenten. Der geschätzte Anfangswert liegt bei 940–970 $, was eine Emissionprämie von 3–6 % über dem fairen Wert impliziert, und die Schuldverschreibungen werden nicht an einer Börse gehandelt. Die anfängliche Verkaufsprovision beträgt 2,25 % des Kapitals.
Wesentliche Risiken umfassen: potenziellen Kapitalverlust, Aussetzung des Kupons bei Überschreiten der Schwelle, Reinvestitionsrisiko bei vorzeitiger Rückzahlung, eingeschränkte Liquidität, Bewertungsabschläge im Sekundärhandel, unsichere steuerliche Behandlung sowie UBS-Kreditrisiko (einschließlich möglicher FINMA-anordneter Bail-in-Maßnahmen oder Restrukturierungen).
- None.
- None.
Insights
TL;DR – 10.65% coupon attractive but high principal-at-risk and no upside participation.
The note’s headline 10.65% contingent coupon is materially above current short-dated dividend yields, but investors must accept three stacked risks: (1) equity risk below 70% of initial Citigroup price; (2) credit risk of UBS, a non-U.S. bank regulated by FINMA; and (3) liquidity risk because the security is unlisted and secondary bid–offer spreads can be wide. The 100% call threshold means early redemption is highly probable if Citigroup rallies modestly, capping income to one or two coupons in a bull scenario. With the initial value at up to 6% below issue price, break-even occurs only after two coupons. The product suits yield-seeking investors with a neutral–to-slightly-bullish view on Citigroup over three years who can tolerate capital loss.
TL;DR – Significant downside, UBS credit exposure, limited marketability: risk-heavy.
Because the downside threshold is only 70%, a 30% drop in Citigroup shares triggers dollar-for-dollar losses. Historical volatility for large U.S. banks makes such moves plausible, especially in stressed credit cycles. UBS’s senior unsecured rating (not provided here) remains investment grade, yet bail-in powers under Swiss regulation increase loss-given-default risk versus U.S. bank notes. Secondary market liquidity is dealer-driven; valuations incorporate internal funding rates, likely at a discount to exit early. Tax treatment is uncertain, adding complexity. Overall risk-reward skews negative relative to conventional fixed-income or diversified equity exposure.
UBS AG London Branch offre Titoli Auto-Richiamabili a Reddito Contingente collegati alle azioni ordinarie di Citigroup Inc. (simbolo “C UN”). I titoli hanno un taglio nominale di $1.000, con prezzo previsto il 3 luglio 2025 e scadenza il 7 luglio 2028, salvo richiamo anticipato.
Il prodotto paga un coupon trimestrale contingente di $26,625 (10,65% annuo) solo se il prezzo di chiusura delle azioni Citigroup alla data di determinazione è pari o superiore alla soglia di ribasso del 70%. Se il prezzo raggiunge o supera la soglia di richiamo al 100% in una qualsiasi data trimestrale, UBS richiamerà anticipatamente i titoli al valore nominale più il coupon. Gli investitori non partecipano all’apprezzamento del titolo; il capitale è protetto solo se il prezzo finale è pari o superiore alla soglia. Se il prezzo finale scende sotto il 70% del livello iniziale, il rimborso sarà legato alla performance azionaria (liquidazione in contanti), esponendo gli investitori a perdite fino al 100% del capitale.
I titoli sono obbligazioni non garantite e non subordinate di UBS; tutti i pagamenti sono soggetti al rischio di credito dell’emittente. Il valore iniziale stimato è tra $940 e $970, implicando un premio di emissione del 3-6% rispetto al valore equo, e i titoli non saranno quotati in alcun mercato. La commissione di vendita anticipata è del 2,25% del capitale.
I principali rischi evidenziati includono: possibile perdita del capitale, sospensione del coupon se la soglia viene violata, rischio di reinvestimento in caso di richiamo anticipato, liquidità limitata, sconti di valutazione nel mercato secondario, trattamento fiscale incerto e rischio di credito UBS (inclusi potenziali interventi FINMA come bail-in o ristrutturazioni).
UBS AG London Branch ofrece Valores Auto-llamables con Ingresos Contingentes vinculados a las acciones ordinarias de Citigroup Inc. (símbolo “C UN”). Los bonos tienen un valor nominal de $1,000, se espera que se fijen el 3 de julio de 2025 y venzan el 7 de julio de 2028, salvo que se llamen anticipadamente.
El producto paga un cupón trimestral contingente de $26.625 (10.65% anual) solo si el precio de cierre de las acciones de Citigroup en la fecha de determinación está en o por encima del umbral de caída del 70%. Si el precio alcanza o supera el umbral de llamada del 100% en cualquier fecha trimestral, UBS redimirá los bonos anticipadamente al valor nominal más el cupón. Los inversores no participan en la subida; el principal está protegido solo si el precio final está en o por encima del umbral. Si el precio final cae por debajo del 70% del nivel inicial, el reembolso será igual al rendimiento de la acción (liquidado en efectivo), exponiendo a los tenedores a pérdidas de hasta el 100% del principal.
Los valores son obligaciones no garantizadas y no subordinadas de UBS; todos los pagos están sujetos al riesgo crediticio del emisor. El valor inicial estimado es entre $940 y $970, lo que implica una prima de emisión del 3-6% sobre el valor justo, y los bonos no estarán listados en ninguna bolsa. La comisión inicial de venta es del 2.25% del principal.
Los riesgos clave destacados incluyen: posible pérdida del principal, suspensión del cupón si se supera el umbral, riesgo de reinversión por llamada anticipada, liquidez limitada, descuentos de valoración en el mercado secundario, tratamiento fiscal incierto y exposición crediticia a UBS (incluyendo posibles rescates o reestructuraciones ordenadas por FINMA).
UBS AG 런던 지점은 Citigroup Inc. (티커 “C UN”)의 보통주와 연계된 조건부 소득 자동 상환 증권을 제공합니다. 이 증권은 $1,000 액면가이며, 2025년 7월 3일에 가격이 책정되고 2028년 7월 7일에 만기되며, 조기 상환되지 않는 한 만기됩니다.
이 상품은 분기별로 $26.625 (연 10.65%)의 조건부 쿠폰을 지급하며, 이는 결정일에 Citigroup의 종가가 70% 하락 한계선 이상일 때만 지급됩니다. 만약 분기 중 어느 날에 100% 조기상환 한계선에 도달하거나 초과하면 UBS는 액면가와 쿠폰을 더한 금액으로 조기 상환합니다. 투자자는 상승에 대한 참여가 없으며, 최종 가격이 한계선 이상일 때만 원금이 보호됩니다. 최종 가격이 초기 가격의 70% 미만으로 떨어지면 주가 성과에 따라 상환되며(현금 결제), 투자자는 최대 100% 원금 손실 위험에 노출됩니다.
이 증권은 UBS의 무담보, 비후순위 채무이며, 모든 지급은 발행자의 신용 위험에 따릅니다. 예상 초기 가치는 $940~$970로 공정 가치 대비 3~6% 발행 프리미엄이 포함되며, 증권은 어떤 거래소에도 상장되지 않습니다. 선취 판매 수수료는 원금의 2.25%입니다.
주요 위험으로는 원금 손실 가능성, 한계선 위반 시 쿠폰 중단, 조기 상환 시 재투자 위험, 제한된 유동성, 2차 시장 평가 할인, 불확실한 세금 처리, UBS 신용 위험(금융감독원(FINMA) 명령에 따른 강제 구조조정 포함)이 있습니다.
UBS AG London Branch propose des titres à revenu conditionnel auto-remboursables liés aux actions ordinaires de Citigroup Inc. (symbole « C UN »). Les titres ont une valeur nominale de 1 000 $, devraient être prix le 3 juillet 2025 et arriver à échéance le 7 juillet 2028, sauf rappel anticipé.
Le produit verse un coupon trimestriel conditionnel de 26,625 $ (10,65 % par an) uniquement si le cours de clôture de Citigroup à la date de détermination est au moins égal au seuil de baisse de 70 %. Si le cours atteint ou dépasse le seuil de rappel à 100 % à une date trimestrielle, UBS procédera au remboursement anticipé au pair plus coupon. Les investisseurs ne bénéficient d’aucune participation à la hausse ; le capital est protégé uniquement si le cours final est au-dessus du seuil. Si le cours final est inférieur à 70 % du niveau initial, le remboursement correspond à la performance de l’action (règlement en espèces), exposant les détenteurs à une perte pouvant aller jusqu’à 100 % du capital.
Les titres sont des obligations non garanties et non subordonnées d’UBS ; tous les paiements sont soumis au risque de crédit de l’émetteur. La valeur initiale estimée se situe entre 940 $ et 970 $, impliquant une prime d’émission de 3 à 6 % par rapport à la juste valeur, et les titres ne seront pas cotés sur aucune bourse. La commission initiale de vente est de 2,25 % du principal.
Les risques clés mentionnés incluent : risque de perte en capital, suspension du coupon si le seuil est franchi, risque de réinvestissement en cas de rappel anticipé, liquidité limitée, décotes en cas de revente sur le marché secondaire, traitement fiscal incertain, et exposition au risque de crédit UBS (y compris possibilité de bail-in ou restructuration imposée par la FINMA).
UBS AG London Branch bietet Contingent Income Auto-Callable Securities, die an die Stammaktien von Citigroup Inc. (Ticker „C UN“) gekoppelt sind. Die Schuldverschreibungen haben einen Nennwert von 1.000 $, sollen am 3. Juli 2025 bepreist werden und am 7. Juli 2028 fällig sein, sofern sie nicht vorher eingelöst werden.
Das Produkt zahlt einen vierteljährlichen bedingten Kupon von 26,625 $ (10,65 % p.a.) nur, wenn der Schlusskurs der Citigroup-Aktie am Bewertungstag auf oder über der 70 % Abwärtsgrenze liegt. Sollte der Kurs an einem Quartalstermin die 100 % Rückzahlungsgrenze erreichen oder überschreiten, wird UBS die Schuldverschreibungen vorzeitig zum Nennwert zuzüglich Kupon zurückzahlen. Anleger erhalten keine Beteiligung an Kurssteigerungen; der Kapitalbetrag ist nur geschützt, wenn der Endkurs auf oder über der Schwelle liegt. Fällt der Endkurs unter 70 % des Anfangsniveaus, erfolgt die Rückzahlung entsprechend der Aktienperformance (bar abgerechnet), wodurch Verluste bis zu 100 % des Kapitals möglich sind.
Die Wertpapiere sind ungesicherte, nicht nachrangige Verbindlichkeiten von UBS; alle Zahlungen unterliegen dem Kreditrisiko des Emittenten. Der geschätzte Anfangswert liegt bei 940–970 $, was eine Emissionprämie von 3–6 % über dem fairen Wert impliziert, und die Schuldverschreibungen werden nicht an einer Börse gehandelt. Die anfängliche Verkaufsprovision beträgt 2,25 % des Kapitals.
Wesentliche Risiken umfassen: potenziellen Kapitalverlust, Aussetzung des Kupons bei Überschreiten der Schwelle, Reinvestitionsrisiko bei vorzeitiger Rückzahlung, eingeschränkte Liquidität, Bewertungsabschläge im Sekundärhandel, unsichere steuerliche Behandlung sowie UBS-Kreditrisiko (einschließlich möglicher FINMA-anordneter Bail-in-Maßnahmen oder Restrukturierungen).
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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 Citigroup Inc.
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 Citigroup Inc. (Bloomberg Ticker: “C UN”) |
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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 $26.625 (equivalent to 10.65% 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: |
70.00% 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. |
|
Final price: |
The closing price of the underlying equity on the final determination date. |
|
CUSIP / ISIN: |
90308V6S5 / US90308V6S56 |
|
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 $940.00 and $970.00 per security. See “Risk Factors” in the preliminary pricing supplement. |
|
Preliminary pricing supplement: |
http://www.sec.gov/Archives/edgar/data/1114446/000183988225034918/ubs_424b2-18999.htm |
|
HYPOTHETICAL PAYOUT |
The below figures are based on a hypothetical downside threshold level of 70.00% 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 |
|
-31.00% |
$690.00 |
|
-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 contingent coupon does WUCT’s new UBS auto-callable security pay?
When can the UBS auto-callable notes be redeemed early?
How much principal protection do the securities provide?
Will the securities be listed on an exchange?
What is the estimated initial value compared to the $1,000 issue price?
What are the main risks highlighted in the free writing prospectus?
