[FWP] ETRACS Whitney US Critical Technologies ETN Free Writing Prospectus
UBS AG London Branch plans to issue Contingent Income Auto-Callable Securities maturing on or about 30 June 2028 that reference the common stock of Talen Energy Corporation (TLN UW).
The $1,000-denominated notes offer a quarterly contingent coupon of $39.75 (15.90% p.a.) if, on a determination date, TLN’s closing price is at or above the 50% downside threshold. The same test also applies at maturity. If the underlying closes at or above its 100% call threshold on any quarterly observation date (other than the final one), UBS will redeem the notes early for par plus the current coupon.
Principal is not protected. Should the final price fall below the 50% threshold, investors receive only the cash value (initial price × exchange ratio), suffering a one-for-one loss beyond that point; a total loss is possible if TLN falls 100%. Hypothetical tables illustrate that a 51% drop would cut principal to $490.
The notes are unsecured, unsubordinated UBS debt; all payments depend on UBS’s creditworthiness. Estimated initial value is $921.90-$951.90, implying up-front fees of roughly 5-8%. They will not be listed, and secondary liquidity is expected to be limited.
Main risks highlighted include credit risk, market risk tied to a single equity with limited trading history, early-call uncertainty, potential conflicts of interest in hedging, and uncertain U.S. tax treatment.
Investors should review the preliminary pricing supplement, product supplement, and prospectus on the SEC website before investing.
UBS AG London Branch prevede di emettere Contingent Income Auto-Callable Securities con scadenza intorno al 30 giugno 2028, che fanno riferimento alle azioni ordinarie di Talen Energy Corporation (TLN UW).
I titoli, denominati in $1.000, offrono un coupon trimestrale condizionato di $39,75 (15,90% annuo) se, alla data di determinazione, il prezzo di chiusura di TLN è pari o superiore alla soglia di ribasso del 50%. Lo stesso criterio si applica anche alla scadenza. Se il sottostante chiude a o sopra la soglia di richiamo del 100% in una qualsiasi data di osservazione trimestrale (esclusa l’ultima), UBS procederà al rimborso anticipato dei titoli al valore nominale più il coupon corrente.
Il capitale non è protetto. Se il prezzo finale scende sotto la soglia del 50%, gli investitori ricevono solo il valore in contanti (prezzo iniziale × rapporto di cambio), subendo una perdita uno a uno oltre tale punto; una perdita totale è possibile se TLN crolla del 100%. Tabelle ipotetiche mostrano che una caduta del 51% ridurrebbe il capitale a $490.
I titoli sono debito UBS non garantito e non subordinato; tutti i pagamenti dipendono dalla solidità creditizia di UBS. Il valore iniziale stimato è tra $921,90 e $951,90, implicando commissioni iniziali di circa il 5-8%. Non saranno quotati in borsa e la liquidità secondaria sarà probabilmente limitata.
I principali rischi evidenziati comprendono il rischio di credito, il rischio di mercato legato a un singolo titolo azionario con una storia di negoziazione limitata, l’incertezza del richiamo anticipato, potenziali conflitti d’interesse nelle coperture e il trattamento fiscale statunitense incerto.
Gli investitori dovrebbero consultare il supplemento preliminare di prezzo, il supplemento prodotto e il prospetto sul sito della SEC prima di investire.
UBS AG London Branch planea emitir Valores Auto-llamables con Ingresos Contingentes con vencimiento alrededor del 30 de junio de 2028, que hacen referencia a las acciones ordinarias de Talen Energy Corporation (TLN UW).
Los bonos denominados en $1,000 ofrecen un cupón trimestral contingente de $39.75 (15.90% anual) si, en la fecha de determinación, el precio de cierre de TLN está en o por encima del umbral de caída del 50%. La misma prueba aplica también al vencimiento. Si el subyacente cierra en o por encima del umbral de llamado del 100% en cualquier fecha de observación trimestral (excepto la última), UBS redimirá los bonos anticipadamente al valor nominal más el cupón actual.
El principal no está protegido. Si el precio final cae por debajo del umbral del 50%, los inversores reciben solo el valor en efectivo (precio inicial × ratio de intercambio), sufriendo una pérdida uno a uno más allá de ese punto; una pérdida total es posible si TLN cae un 100%. Tablas hipotéticas ilustran que una caída del 51% reduciría el principal a $490.
Los bonos son deuda UBS no garantizada y no subordinada; todos los pagos dependen de la solvencia crediticia de UBS. El valor inicial estimado es entre $921.90 y $951.90, implicando comisiones iniciales de aproximadamente 5-8%. No serán listados en bolsa y se espera que la liquidez secundaria sea limitada.
Los principales riesgos destacados incluyen riesgo crediticio, riesgo de mercado ligado a una sola acción con historial limitado de negociación, incertidumbre sobre el llamado anticipado, posibles conflictos de interés en la cobertura y un tratamiento fiscal estadounidense incierto.
Los inversores deben revisar el suplemento preliminar de precios, el suplemento de producto y el prospecto en el sitio web de la SEC antes de invertir.
UBS AG 런던 지점은 2028년 6월 30일경 만기되는 조건부 소득 자동 상환 증권을 발행할 계획이며, 이는 Talen Energy Corporation (TLN UW)의 보통주를 참조합니다.
액면가 $1,000의 이 노트는 분기별 조건부 쿠폰 $39.75(연 15.90%)를 제공합니다. 결정일에 TLN 종가가 50% 하락 임계값 이상일 경우 지급됩니다. 이 검사 기준은 만기 시에도 적용됩니다. 기말이 아닌 분기별 관찰일에 기초자산이 100% 상환 임계값 이상으로 마감하면 UBS는 현재 쿠폰과 함께 액면가로 조기 상환합니다.
원금은 보호되지 않습니다. 만기 가격이 50% 임계값 아래로 떨어지면 투자자는 현금 가치(초기 가격 × 교환 비율)만 받으며, 이 지점 이후 1:1 손실이 발생합니다. TLN이 100% 하락하면 전액 손실도 가능합니다. 가상 표에 따르면 51% 하락 시 원금이 $490로 줄어듭니다.
이 노트는 무담보, 비후순위 UBS 부채이며 모든 지불은 UBS의 신용도에 달려 있습니다. 예상 초기 가치는 $921.90~$951.90로, 약 5~8%의 선취 수수료를 포함합니다. 상장은 하지 않으며, 2차 유동성은 제한적일 것으로 예상됩니다.
주요 위험으로는 신용 위험, 거래 이력이 제한된 단일 주식에 따른 시장 위험, 조기 상환 불확실성, 헤지 관련 잠재적 이해 상충, 그리고 미국 세금 처리의 불확실성이 포함됩니다.
투자자는 투자 전 SEC 웹사이트에서 예비 가격 보충서, 제품 보충서 및 설명서를 반드시 검토해야 합니다.
UBS AG succursale de Londres prévoit d’émettre des titres à revenu conditionnel auto-remboursables arrivant à échéance vers le 30 juin 2028, référencés sur les actions ordinaires de Talen Energy Corporation (TLN UW).
Les billets, d’une valeur nominale de 1 000 $, offrent un coupon conditionnel trimestriel de 39,75 $ (15,90 % par an) si, à une date de détermination, le cours de clôture de TLN est au moins égal au seuil de baisse de 50 %. Le même test s’applique à l’échéance. Si le sous-jacent clôture à ou au-dessus du seuil d’appel de 100 % à une date d’observation trimestrielle (autre que la dernière), UBS procédera au remboursement anticipé des titres à leur valeur nominale plus le coupon courant.
Le capital n’est pas protégé. Si le prix final est inférieur au seuil de 50 %, les investisseurs ne reçoivent que la valeur en espèces (prix initial × ratio d’échange), subissant une perte dollar pour dollar au-delà de ce point ; une perte totale est possible si TLN chute de 100 %. Des tableaux hypothétiques montrent qu’une chute de 51 % réduirait le capital à 490 $.
Les titres sont une dette UBS non garantie et non subordonnée ; tous les paiements dépendent de la solvabilité d’UBS. La valeur initiale estimée est comprise entre 921,90 $ et 951,90 $, impliquant des frais initiaux d’environ 5 à 8 %. Ils ne seront pas cotés en bourse et la liquidité secondaire devrait être limitée.
Les principaux risques soulignés comprennent le risque de crédit, le risque de marché lié à une seule action avec un historique de négociation limité, l’incertitude liée au remboursement anticipé, des conflits d’intérêts potentiels dans la couverture, et un traitement fiscal américain incertain.
Les investisseurs doivent consulter le supplément préliminaire de prix, le supplément produit et le prospectus sur le site de la SEC avant d’investir.
UBS AG London Branch plant die Ausgabe von Contingent Income Auto-Callable Securities mit Fälligkeit um den 30. Juni 2028, die sich auf die Stammaktien von Talen Energy Corporation (TLN UW) beziehen.
Die auf 1.000 $ lautenden Notes bieten einen vierteljährlichen bedingten Kupon von 39,75 $ (15,90 % p.a.), sofern der Schlusskurs von TLN an einem Feststellungstag auf oder über der 50%-Downside-Schwelle liegt. Derselbe Test gilt auch bei Fälligkeit. Schließt der Basiswert an einem der vierteljährlichen Beobachtungstermine (außer dem letzten) auf oder über der 100%-Call-Schwelle, wird UBS die Notes vorzeitig zum Nennwert plus dem aktuellen Kupon zurückzahlen.
Das Kapital ist nicht geschützt. Fällt der Schlusskurs am Ende unter die 50%-Schwelle, erhalten Anleger nur den Barwert (Anfangspreis × Umtauschverhältnis) und erleiden darüber hinaus einen eins-zu-eins Verlust; ein Totalverlust ist möglich, wenn TLN um 100% fällt. Hypothetische Tabellen zeigen, dass ein Rückgang um 51% das Kapital auf 490 $ reduzieren würde.
Die Notes sind ungesicherte, nicht nachrangige UBS-Schuldtitel; alle Zahlungen hängen von der Kreditwürdigkeit von UBS ab. Der geschätzte Anfangswert liegt bei 921,90 $ bis 951,90 $, was Vorabgebühren von etwa 5-8 % impliziert. Sie werden nicht börslich gehandelt, und die Sekundärliquidität wird voraussichtlich begrenzt sein.
Hauptsächliche Risiken umfassen Kreditrisiko, Marktrisiko im Zusammenhang mit einer einzelnen Aktie mit begrenzter Handelshistorie, Unsicherheit bei vorzeitiger Rückzahlung, potenzielle Interessenkonflikte bei der Absicherung sowie eine unsichere US-Steuerbehandlung.
Investoren sollten vor einer Anlage den vorläufigen Preiszusatz, das Produkt-Addendum und den Prospekt auf der SEC-Website prüfen.
- Attractive 15.90% annual contingent coupon enhances income potential.
- Quarterly auto-call feature allows early return of capital plus coupon if the underlying performs moderately well.
- No principal protection; investors lose one-for-one below a 50% decline.
- Single-equity concentration amplifies volatility and idiosyncratic risk.
- Unsecured UBS credit risk exposes holders to issuer default or bail-in.
- Product is unlisted, implying limited secondary liquidity and potentially wide spreads.
- Estimated initial value below par indicates immediate economic discount of 5-8%.
- Uncertain U.S. tax treatment could affect after-tax returns.
Insights
TL;DR High 15.9% coupon but full downside below 50% and credit risk make this a yield-seeking, high-risk play.
The FWP details a classic auto-call contingent-income note. The 15.9% annual coupon is attractive relative to conventional yield products, yet investors trade equity upside for fixed income-like cash flows that cease if TLN trades below half its initial level on any quarterly date. UBS retains the right to call at par, capping duration when the trade works in investors’ favour. Estimated initial value (92-95% of issue price) signals a 5-8% placement cost, typical but material. Absence of listing constrains exit options; bid/offer spreads could be wide. Credit exposure to UBS (currently investment grade but subject to FINMA resolution regime) is another layer of risk. For portfolios comfortable with single-name equity risk and seeking elevated income, the structure is potentially useful; however, it is neither capital-preserving nor diversified, and adverse moves in TLN or UBS’s credit spread could erode value rapidly.
UBS AG London Branch prevede di emettere Contingent Income Auto-Callable Securities con scadenza intorno al 30 giugno 2028, che fanno riferimento alle azioni ordinarie di Talen Energy Corporation (TLN UW).
I titoli, denominati in $1.000, offrono un coupon trimestrale condizionato di $39,75 (15,90% annuo) se, alla data di determinazione, il prezzo di chiusura di TLN è pari o superiore alla soglia di ribasso del 50%. Lo stesso criterio si applica anche alla scadenza. Se il sottostante chiude a o sopra la soglia di richiamo del 100% in una qualsiasi data di osservazione trimestrale (esclusa l’ultima), UBS procederà al rimborso anticipato dei titoli al valore nominale più il coupon corrente.
Il capitale non è protetto. Se il prezzo finale scende sotto la soglia del 50%, gli investitori ricevono solo il valore in contanti (prezzo iniziale × rapporto di cambio), subendo una perdita uno a uno oltre tale punto; una perdita totale è possibile se TLN crolla del 100%. Tabelle ipotetiche mostrano che una caduta del 51% ridurrebbe il capitale a $490.
I titoli sono debito UBS non garantito e non subordinato; tutti i pagamenti dipendono dalla solidità creditizia di UBS. Il valore iniziale stimato è tra $921,90 e $951,90, implicando commissioni iniziali di circa il 5-8%. Non saranno quotati in borsa e la liquidità secondaria sarà probabilmente limitata.
I principali rischi evidenziati comprendono il rischio di credito, il rischio di mercato legato a un singolo titolo azionario con una storia di negoziazione limitata, l’incertezza del richiamo anticipato, potenziali conflitti d’interesse nelle coperture e il trattamento fiscale statunitense incerto.
Gli investitori dovrebbero consultare il supplemento preliminare di prezzo, il supplemento prodotto e il prospetto sul sito della SEC prima di investire.
UBS AG London Branch planea emitir Valores Auto-llamables con Ingresos Contingentes con vencimiento alrededor del 30 de junio de 2028, que hacen referencia a las acciones ordinarias de Talen Energy Corporation (TLN UW).
Los bonos denominados en $1,000 ofrecen un cupón trimestral contingente de $39.75 (15.90% anual) si, en la fecha de determinación, el precio de cierre de TLN está en o por encima del umbral de caída del 50%. La misma prueba aplica también al vencimiento. Si el subyacente cierra en o por encima del umbral de llamado del 100% en cualquier fecha de observación trimestral (excepto la última), UBS redimirá los bonos anticipadamente al valor nominal más el cupón actual.
El principal no está protegido. Si el precio final cae por debajo del umbral del 50%, los inversores reciben solo el valor en efectivo (precio inicial × ratio de intercambio), sufriendo una pérdida uno a uno más allá de ese punto; una pérdida total es posible si TLN cae un 100%. Tablas hipotéticas ilustran que una caída del 51% reduciría el principal a $490.
Los bonos son deuda UBS no garantizada y no subordinada; todos los pagos dependen de la solvencia crediticia de UBS. El valor inicial estimado es entre $921.90 y $951.90, implicando comisiones iniciales de aproximadamente 5-8%. No serán listados en bolsa y se espera que la liquidez secundaria sea limitada.
Los principales riesgos destacados incluyen riesgo crediticio, riesgo de mercado ligado a una sola acción con historial limitado de negociación, incertidumbre sobre el llamado anticipado, posibles conflictos de interés en la cobertura y un tratamiento fiscal estadounidense incierto.
Los inversores deben revisar el suplemento preliminar de precios, el suplemento de producto y el prospecto en el sitio web de la SEC antes de invertir.
UBS AG 런던 지점은 2028년 6월 30일경 만기되는 조건부 소득 자동 상환 증권을 발행할 계획이며, 이는 Talen Energy Corporation (TLN UW)의 보통주를 참조합니다.
액면가 $1,000의 이 노트는 분기별 조건부 쿠폰 $39.75(연 15.90%)를 제공합니다. 결정일에 TLN 종가가 50% 하락 임계값 이상일 경우 지급됩니다. 이 검사 기준은 만기 시에도 적용됩니다. 기말이 아닌 분기별 관찰일에 기초자산이 100% 상환 임계값 이상으로 마감하면 UBS는 현재 쿠폰과 함께 액면가로 조기 상환합니다.
원금은 보호되지 않습니다. 만기 가격이 50% 임계값 아래로 떨어지면 투자자는 현금 가치(초기 가격 × 교환 비율)만 받으며, 이 지점 이후 1:1 손실이 발생합니다. TLN이 100% 하락하면 전액 손실도 가능합니다. 가상 표에 따르면 51% 하락 시 원금이 $490로 줄어듭니다.
이 노트는 무담보, 비후순위 UBS 부채이며 모든 지불은 UBS의 신용도에 달려 있습니다. 예상 초기 가치는 $921.90~$951.90로, 약 5~8%의 선취 수수료를 포함합니다. 상장은 하지 않으며, 2차 유동성은 제한적일 것으로 예상됩니다.
주요 위험으로는 신용 위험, 거래 이력이 제한된 단일 주식에 따른 시장 위험, 조기 상환 불확실성, 헤지 관련 잠재적 이해 상충, 그리고 미국 세금 처리의 불확실성이 포함됩니다.
투자자는 투자 전 SEC 웹사이트에서 예비 가격 보충서, 제품 보충서 및 설명서를 반드시 검토해야 합니다.
UBS AG succursale de Londres prévoit d’émettre des titres à revenu conditionnel auto-remboursables arrivant à échéance vers le 30 juin 2028, référencés sur les actions ordinaires de Talen Energy Corporation (TLN UW).
Les billets, d’une valeur nominale de 1 000 $, offrent un coupon conditionnel trimestriel de 39,75 $ (15,90 % par an) si, à une date de détermination, le cours de clôture de TLN est au moins égal au seuil de baisse de 50 %. Le même test s’applique à l’échéance. Si le sous-jacent clôture à ou au-dessus du seuil d’appel de 100 % à une date d’observation trimestrielle (autre que la dernière), UBS procédera au remboursement anticipé des titres à leur valeur nominale plus le coupon courant.
Le capital n’est pas protégé. Si le prix final est inférieur au seuil de 50 %, les investisseurs ne reçoivent que la valeur en espèces (prix initial × ratio d’échange), subissant une perte dollar pour dollar au-delà de ce point ; une perte totale est possible si TLN chute de 100 %. Des tableaux hypothétiques montrent qu’une chute de 51 % réduirait le capital à 490 $.
Les titres sont une dette UBS non garantie et non subordonnée ; tous les paiements dépendent de la solvabilité d’UBS. La valeur initiale estimée est comprise entre 921,90 $ et 951,90 $, impliquant des frais initiaux d’environ 5 à 8 %. Ils ne seront pas cotés en bourse et la liquidité secondaire devrait être limitée.
Les principaux risques soulignés comprennent le risque de crédit, le risque de marché lié à une seule action avec un historique de négociation limité, l’incertitude liée au remboursement anticipé, des conflits d’intérêts potentiels dans la couverture, et un traitement fiscal américain incertain.
Les investisseurs doivent consulter le supplément préliminaire de prix, le supplément produit et le prospectus sur le site de la SEC avant d’investir.
UBS AG London Branch plant die Ausgabe von Contingent Income Auto-Callable Securities mit Fälligkeit um den 30. Juni 2028, die sich auf die Stammaktien von Talen Energy Corporation (TLN UW) beziehen.
Die auf 1.000 $ lautenden Notes bieten einen vierteljährlichen bedingten Kupon von 39,75 $ (15,90 % p.a.), sofern der Schlusskurs von TLN an einem Feststellungstag auf oder über der 50%-Downside-Schwelle liegt. Derselbe Test gilt auch bei Fälligkeit. Schließt der Basiswert an einem der vierteljährlichen Beobachtungstermine (außer dem letzten) auf oder über der 100%-Call-Schwelle, wird UBS die Notes vorzeitig zum Nennwert plus dem aktuellen Kupon zurückzahlen.
Das Kapital ist nicht geschützt. Fällt der Schlusskurs am Ende unter die 50%-Schwelle, erhalten Anleger nur den Barwert (Anfangspreis × Umtauschverhältnis) und erleiden darüber hinaus einen eins-zu-eins Verlust; ein Totalverlust ist möglich, wenn TLN um 100% fällt. Hypothetische Tabellen zeigen, dass ein Rückgang um 51% das Kapital auf 490 $ reduzieren würde.
Die Notes sind ungesicherte, nicht nachrangige UBS-Schuldtitel; alle Zahlungen hängen von der Kreditwürdigkeit von UBS ab. Der geschätzte Anfangswert liegt bei 921,90 $ bis 951,90 $, was Vorabgebühren von etwa 5-8 % impliziert. Sie werden nicht börslich gehandelt, und die Sekundärliquidität wird voraussichtlich begrenzt sein.
Hauptsächliche Risiken umfassen Kreditrisiko, Marktrisiko im Zusammenhang mit einer einzelnen Aktie mit begrenzter Handelshistorie, Unsicherheit bei vorzeitiger Rückzahlung, potenzielle Interessenkonflikte bei der Absicherung sowie eine unsichere US-Steuerbehandlung.
Investoren sollten vor einer Anlage den vorläufigen Preiszusatz, das Produkt-Addendum und den Prospekt auf der SEC-Website prüfen.
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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 June 26, 2025 |
Contingent Income Auto-Callable Securities due on or about June 30, 2028
Based on the Performance of the Common Stock of Talen Energy 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 Talen Energy Corporation (Bloomberg Ticker: “TLN UW”) |
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Stated principal amount: |
$1,000.00 per security |
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Pricing date: |
Expected to be June 27, 2025 |
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Original issue date: |
Expected to be July 2, 2025 (3 business days after the pricing date; see preliminary pricing supplement). |
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Final determination date: |
Expected to be June 27, 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 June 30, 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 $39.75 (equivalent to 15.90% 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. |
|
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: |
90308V6P1 / US90308V6P18 |
|
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 $921.90 and $951.90 per security. See “Risk Factors” in the preliminary pricing supplement. |
|
Preliminary pricing supplement: |
http://www.sec.gov/Archives/edgar/data/1114446/000183988225034882/ubs_424b2-18996.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 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.
▪Limited trading history.
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 TLN contingent income notes pay?
When can the contingent income notes be called?
What happens at maturity if TLN drops more than 50%?
Is the principal protected on these notes?
Are the securities listed on an exchange?
How does UBS’s credit impact the notes?
