[FWP] ETRACS Whitney US Critical Technologies ETN Free Writing Prospectus
UBS AG London Branch plans to issue Contingent Income Auto-Callable Securities linked to the common stock of Wells Fargo & Company (WFC). The notes will price on or about 3 July 2025, settle on 9 July 2025 and mature (unless called) on 7 July 2028. Each $1,000 security offers a fixed quarterly contingent coupon of $26.375 (10.55% p.a.) provided WFC’s closing price on the relevant observation date is at or above the 70 % downside threshold. If, on any quarterly determination date before maturity, the stock closes at or above the 100 % call threshold, UBS will redeem the note early at par plus the current coupon.
Principal at risk: should WFC finish below the 70 % threshold on the final determination date, investors receive only the cash value—par multiplied by the percentage decline—exposing them to losses of up to 100 %. Investors do not participate in upside appreciation of WFC.
Key structural elements include:
- Issuer credit. Unsecured, unsubordinated UBS AG obligations; payments depend on UBS’s ability to pay.
- Estimated initial value: $939.50–$969.50, reflecting dealer commissions of 2.25% and hedging costs.
- No listing. Limited or no secondary market; resale price may be well below theoretical value.
- Liquidity & tax risks. Uncertain tax characterization and potential bid-offer disparities in any secondary trading.
UBS AG London Branch prevede di emettere Titoli Contingenti a Rendimento Autocallabile collegati alle azioni ordinarie di Wells Fargo & Company (WFC). Le obbligazioni saranno quotate intorno al 3 luglio 2025, regolamentate il 9 luglio 2025 e scadranno (a meno che non vengano richiamate) il 7 luglio 2028. Ogni titolo da $1.000 offre un cedola trimestrale condizionata fissa di $26,375 (10,55% annuo), a condizione che il prezzo di chiusura di WFC nella data di osservazione rilevante sia pari o superiore alla soglia di ribasso del 70%. Se in una qualsiasi data di determinazione trimestrale prima della scadenza il titolo chiude pari o superiore alla soglia di richiamo del 100%, UBS riscatterà anticipatamente il titolo al valore nominale più la cedola corrente.
Capitale a rischio: se WFC chiude al di sotto della soglia del 70% alla data di determinazione finale, gli investitori riceveranno solo il valore in contanti—valore nominale moltiplicato per la percentuale di ribasso—esponendoli a perdite fino al 100%. Gli investitori non partecipano all’apprezzamento del titolo WFC.
Elementi strutturali chiave includono:
- Credito emittente. Obbligazioni non garantite e non subordinate di UBS AG; i pagamenti dipendono dalla capacità di UBS di farvi fronte.
- Valore iniziale stimato: $939,50–$969,50, comprensivo di commissioni dealer del 2,25% e costi di copertura.
- Nessuna quotazione. Mercato secondario limitato o assente; il prezzo di rivendita può essere molto inferiore al valore teorico.
- Rischi di liquidità e fiscali. Caratterizzazione fiscale incerta e potenziali differenze tra prezzo denaro e lettera in eventuali negoziazioni secondarie.
UBS AG London Branch planea emitir Valores Autocancelables de Ingreso Contingente vinculados a las acciones ordinarias de Wells Fargo & Company (WFC). Los bonos se valorarán aproximadamente el 3 de julio de 2025, se liquidarán el 9 de julio de 2025 y vencerán (a menos que se ejerza el llamado anticipado) el 7 de julio de 2028. Cada título de $1,000 ofrece un cupón trimestral contingente fijo de $26.375 (10.55% anual), siempre que el precio de cierre de WFC en la fecha de observación correspondiente esté en o por encima del umbral de caída del 70%. Si en cualquier fecha de determinación trimestral antes del vencimiento, la acción cierra en o por encima del umbral de llamado del 100%, UBS redimirá anticipadamente el bono al valor nominal más el cupón actual.
Principal en riesgo: si WFC termina por debajo del umbral del 70% en la fecha de determinación final, los inversores recibirán solo el valor en efectivo—valor nominal multiplicado por el porcentaje de caída—exponiéndolos a pérdidas de hasta el 100%. Los inversores no participan en la apreciación al alza de WFC.
Elementos estructurales clave incluyen:
- Crédito del emisor. Obligaciones no garantizadas y no subordinadas de UBS AG; los pagos dependen de la capacidad de UBS para cumplir.
- Valor inicial estimado: $939.50–$969.50, reflejando comisiones de intermediarios del 2.25% y costos de cobertura.
- Sin cotización. Mercado secundario limitado o inexistente; el precio de reventa puede estar muy por debajo del valor teórico.
- Riesgos de liquidez y fiscales. Caracterización fiscal incierta y posibles diferencias en el precio de compra-venta en cualquier negociación secundaria.
UBS AG 런던 지점은 Wells Fargo & Company (WFC)의 보통주에 연계된 조건부 소득 자동 콜 가능 증권을 발행할 계획입니다. 해당 증권은 2025년 7월 3일경 가격이 책정되고, 2025년 7월 9일에 결제되며, (콜되지 않는 한) 2028년 7월 7일에 만기됩니다. 각 $1,000 증권은 WFC의 종가가 관련 관찰일에 70% 하락 한계선 이상일 경우 분기별 조건부 고정 쿠폰 $26.375 (연 10.55%)를 제공합니다. 만기 전 어느 분기 결정일에 주가가 100% 콜 한계선 이상으로 마감되면 UBS는 현재 쿠폰과 함께 액면가로 조기 상환합니다.
원금 위험: 만기 최종 결정일에 WFC가 70% 한계선 아래로 마감하면 투자자는 현금 가치—액면가에 하락 비율을 곱한 금액—만 받게 되어 최대 100% 손실 위험에 노출됩니다. 투자자는 WFC의 주가 상승에 참여하지 않습니다.
주요 구조적 요소는 다음과 같습니다:
- 발행자 신용 위험. UBS AG의 무담보 비우선채무; 지급은 UBS의 지급 능력에 달려 있습니다.
- 예상 초기 가치: 딜러 수수료 2.25% 및 헤지 비용을 반영한 $939.50~$969.50입니다.
- 상장 없음. 제한적이거나 없는 2차 시장; 재판매 가격이 이론적 가치보다 훨씬 낮을 수 있습니다.
- 유동성 및 세금 위험. 불확실한 세금 분류 및 2차 거래 시 매도-매수 가격 차이 가능성.
UBS AG succursale de Londres prévoit d’émettre des titres à revenu contingent auto-remboursables liés aux actions ordinaires de Wells Fargo & Company (WFC). Les titres seront cotés aux alentours du 3 juillet 2025, réglés le 9 juillet 2025 et arriveront à échéance (sauf remboursement anticipé) le 7 juillet 2028. Chaque titre de 1 000 $ offre un coupon trimestriel contingent fixe de 26,375 $ (10,55 % par an), à condition que le cours de clôture de WFC à la date d’observation pertinente soit supérieur ou égal au seuil de baisse de 70 %. Si, à une date de détermination trimestrielle avant l’échéance, l’action clôture au-dessus du seuil de remboursement anticipé de 100 %, UBS procédera au remboursement anticipé du titre à la valeur nominale plus le coupon en cours.
Capital à risque : si WFC termine en dessous du seuil de 70 % à la date de détermination finale, les investisseurs ne recevront que la valeur en espèces—valeur nominale multipliée par le pourcentage de baisse—s’exposant à des pertes pouvant atteindre 100 %. Les investisseurs ne participent pas à l’appréciation du cours de WFC.
Les principaux éléments structurels comprennent :
- Crédit de l’émetteur. Obligations non garanties et non subordonnées émises par UBS AG ; les paiements dépendent de la capacité de paiement d’UBS.
- Valeur initiale estimée : 939,50 $–969,50 $, incluant des commissions de 2,25 % et des coûts de couverture.
- Pas de cotation. Marché secondaire limité ou inexistant ; le prix de revente peut être nettement inférieur à la valeur théorique.
- Risques de liquidité et fiscaux. Caractérisation fiscale incertaine et possibles écarts entre prix acheteur et vendeur lors de toute transaction secondaire.
UBS AG London Branch plant die Emission von bedingten, automatisch kündbaren Einkommenswertpapieren, die an die Stammaktien von Wells Fargo & Company (WFC) gekoppelt sind. Die Papiere werden voraussichtlich am oder um den 3. Juli 2025 bepreist, am 9. Juli 2025 abgewickelt und laufen (sofern nicht vorzeitig zurückgerufen) bis zum 7. Juli 2028. Jede $1.000-Anleihe bietet eine feste vierteljährliche bedingte Kuponzahlung von $26,375 (10,55 % p.a.), sofern der Schlusskurs von WFC am jeweiligen Beobachtungstag auf oder über der 70 %-Abschwung-Schwelle liegt. Schließt die Aktie an einem der vierteljährlichen Feststellungstage vor Fälligkeit auf oder über der 100 %-Rückruf-Schwelle, wird UBS die Anleihe zum Nennwert zuzüglich des aktuellen Kupons vorzeitig zurückzahlen.
Kapitalrisiko: Sollte WFC am letzten Feststellungstag unter der 70 %-Schwelle schließen, erhalten Anleger nur den Barwert—Nennwert multipliziert mit der prozentualen Abwärtsbewegung—und sind somit einem Totalverlustrisiko von bis zu 100 % ausgesetzt. Anleger partizipieren nicht an Kurssteigerungen von WFC.
Wesentliche strukturelle Merkmale umfassen:
- Emittentenrisiko. Unbesicherte, nicht nachrangige Verbindlichkeiten von UBS AG; Zahlungen hängen von der Zahlungsfähigkeit von UBS ab.
- Geschätzter Anfangswert: $939,50–$969,50, inklusive Händlerprovisionen von 2,25 % und Absicherungskosten.
- Keine Börsennotierung. Eingeschränkter oder kein Sekundärmarkt; Wiederverkaufspreise können deutlich unter dem theoretischen Wert liegen.
- Liquiditäts- und Steuer-Risiken. Unklare steuerliche Einstufung und mögliche Geld-Brief-Spannen bei Sekundärhandel.
- Double-digit contingent coupon: 10.55% per annum offers attractive income relative to current investment-grade yields.
- 30 % downside buffer: investors are protected against moderate declines in WFC until the price falls below 70 % of initial.
- Quarterly early-call feature: potential for quicker return of capital if WFC trades at or above the initial price during the term.
- Principal at risk: final price below the 70 % threshold results in dollar-for-dollar loss, up to total forfeiture.
- No upside participation: investors are capped at par; any WFC appreciation accrues solely to UBS.
- Issuer credit exposure: payments depend on UBS’s ability to meet obligations; the notes are unsecured and unsubordinated.
- Illiquidity: securities are unlisted; secondary market, if any, may be thin and at deep discounts.
- Estimated initial value below par: initial valuation of 93.95–96.95% implies an immediate mark-to-market deficit.
- Uncertain tax treatment: classification as prepaid derivative with contingent coupons may create filing complexity for holders.
Insights
TL;DR: High 10.55% coupon but principal loses below –30% WFC, fully exposed to UBS credit risk.
The note offers an above-market coupon contingent on WFC holding at ≥70 % of initial. Quarterly early-call at 100 % gives UBS the upside optionality, capping investors at par plus coupon. The 30 % buffer is thin for a three-year single-stock exposure, particularly given WFC’s historic annualized volatility in the mid-20s. Estimated initial value (≤96.95%) shows a 3-6% initial yield drag. Investors effectively short a down-and-in put and a knock-out call while being long UBS credit—appropriate only for yield-hungry buyers with a stable-to-moderately-bullish WFC outlook.
TL;DR: Significant tail risk, no upside, illiquid; unfavorable for capital-preservation investors.
The structure embeds multiple risks: single-stock concentration, no principal guarantee, uncertain tax, and non-listed liquidity. A 30 % buffer may be pierced in severe market stress, leading to 1-for-1 downside to zero. UBS credit spreads add further volatility; any downgrade could pressure note valuations well before maturity. Absent a deep understanding of the payoff profile, retail holders may misprice the embedded options, making this issuance more negative than positive for conservative portfolios.
UBS AG London Branch prevede di emettere Titoli Contingenti a Rendimento Autocallabile collegati alle azioni ordinarie di Wells Fargo & Company (WFC). Le obbligazioni saranno quotate intorno al 3 luglio 2025, regolamentate il 9 luglio 2025 e scadranno (a meno che non vengano richiamate) il 7 luglio 2028. Ogni titolo da $1.000 offre un cedola trimestrale condizionata fissa di $26,375 (10,55% annuo), a condizione che il prezzo di chiusura di WFC nella data di osservazione rilevante sia pari o superiore alla soglia di ribasso del 70%. Se in una qualsiasi data di determinazione trimestrale prima della scadenza il titolo chiude pari o superiore alla soglia di richiamo del 100%, UBS riscatterà anticipatamente il titolo al valore nominale più la cedola corrente.
Capitale a rischio: se WFC chiude al di sotto della soglia del 70% alla data di determinazione finale, gli investitori riceveranno solo il valore in contanti—valore nominale moltiplicato per la percentuale di ribasso—esponendoli a perdite fino al 100%. Gli investitori non partecipano all’apprezzamento del titolo WFC.
Elementi strutturali chiave includono:
- Credito emittente. Obbligazioni non garantite e non subordinate di UBS AG; i pagamenti dipendono dalla capacità di UBS di farvi fronte.
- Valore iniziale stimato: $939,50–$969,50, comprensivo di commissioni dealer del 2,25% e costi di copertura.
- Nessuna quotazione. Mercato secondario limitato o assente; il prezzo di rivendita può essere molto inferiore al valore teorico.
- Rischi di liquidità e fiscali. Caratterizzazione fiscale incerta e potenziali differenze tra prezzo denaro e lettera in eventuali negoziazioni secondarie.
UBS AG London Branch planea emitir Valores Autocancelables de Ingreso Contingente vinculados a las acciones ordinarias de Wells Fargo & Company (WFC). Los bonos se valorarán aproximadamente el 3 de julio de 2025, se liquidarán el 9 de julio de 2025 y vencerán (a menos que se ejerza el llamado anticipado) el 7 de julio de 2028. Cada título de $1,000 ofrece un cupón trimestral contingente fijo de $26.375 (10.55% anual), siempre que el precio de cierre de WFC en la fecha de observación correspondiente esté en o por encima del umbral de caída del 70%. Si en cualquier fecha de determinación trimestral antes del vencimiento, la acción cierra en o por encima del umbral de llamado del 100%, UBS redimirá anticipadamente el bono al valor nominal más el cupón actual.
Principal en riesgo: si WFC termina por debajo del umbral del 70% en la fecha de determinación final, los inversores recibirán solo el valor en efectivo—valor nominal multiplicado por el porcentaje de caída—exponiéndolos a pérdidas de hasta el 100%. Los inversores no participan en la apreciación al alza de WFC.
Elementos estructurales clave incluyen:
- Crédito del emisor. Obligaciones no garantizadas y no subordinadas de UBS AG; los pagos dependen de la capacidad de UBS para cumplir.
- Valor inicial estimado: $939.50–$969.50, reflejando comisiones de intermediarios del 2.25% y costos de cobertura.
- Sin cotización. Mercado secundario limitado o inexistente; el precio de reventa puede estar muy por debajo del valor teórico.
- Riesgos de liquidez y fiscales. Caracterización fiscal incierta y posibles diferencias en el precio de compra-venta en cualquier negociación secundaria.
UBS AG 런던 지점은 Wells Fargo & Company (WFC)의 보통주에 연계된 조건부 소득 자동 콜 가능 증권을 발행할 계획입니다. 해당 증권은 2025년 7월 3일경 가격이 책정되고, 2025년 7월 9일에 결제되며, (콜되지 않는 한) 2028년 7월 7일에 만기됩니다. 각 $1,000 증권은 WFC의 종가가 관련 관찰일에 70% 하락 한계선 이상일 경우 분기별 조건부 고정 쿠폰 $26.375 (연 10.55%)를 제공합니다. 만기 전 어느 분기 결정일에 주가가 100% 콜 한계선 이상으로 마감되면 UBS는 현재 쿠폰과 함께 액면가로 조기 상환합니다.
원금 위험: 만기 최종 결정일에 WFC가 70% 한계선 아래로 마감하면 투자자는 현금 가치—액면가에 하락 비율을 곱한 금액—만 받게 되어 최대 100% 손실 위험에 노출됩니다. 투자자는 WFC의 주가 상승에 참여하지 않습니다.
주요 구조적 요소는 다음과 같습니다:
- 발행자 신용 위험. UBS AG의 무담보 비우선채무; 지급은 UBS의 지급 능력에 달려 있습니다.
- 예상 초기 가치: 딜러 수수료 2.25% 및 헤지 비용을 반영한 $939.50~$969.50입니다.
- 상장 없음. 제한적이거나 없는 2차 시장; 재판매 가격이 이론적 가치보다 훨씬 낮을 수 있습니다.
- 유동성 및 세금 위험. 불확실한 세금 분류 및 2차 거래 시 매도-매수 가격 차이 가능성.
UBS AG succursale de Londres prévoit d’émettre des titres à revenu contingent auto-remboursables liés aux actions ordinaires de Wells Fargo & Company (WFC). Les titres seront cotés aux alentours du 3 juillet 2025, réglés le 9 juillet 2025 et arriveront à échéance (sauf remboursement anticipé) le 7 juillet 2028. Chaque titre de 1 000 $ offre un coupon trimestriel contingent fixe de 26,375 $ (10,55 % par an), à condition que le cours de clôture de WFC à la date d’observation pertinente soit supérieur ou égal au seuil de baisse de 70 %. Si, à une date de détermination trimestrielle avant l’échéance, l’action clôture au-dessus du seuil de remboursement anticipé de 100 %, UBS procédera au remboursement anticipé du titre à la valeur nominale plus le coupon en cours.
Capital à risque : si WFC termine en dessous du seuil de 70 % à la date de détermination finale, les investisseurs ne recevront que la valeur en espèces—valeur nominale multipliée par le pourcentage de baisse—s’exposant à des pertes pouvant atteindre 100 %. Les investisseurs ne participent pas à l’appréciation du cours de WFC.
Les principaux éléments structurels comprennent :
- Crédit de l’émetteur. Obligations non garanties et non subordonnées émises par UBS AG ; les paiements dépendent de la capacité de paiement d’UBS.
- Valeur initiale estimée : 939,50 $–969,50 $, incluant des commissions de 2,25 % et des coûts de couverture.
- Pas de cotation. Marché secondaire limité ou inexistant ; le prix de revente peut être nettement inférieur à la valeur théorique.
- Risques de liquidité et fiscaux. Caractérisation fiscale incertaine et possibles écarts entre prix acheteur et vendeur lors de toute transaction secondaire.
UBS AG London Branch plant die Emission von bedingten, automatisch kündbaren Einkommenswertpapieren, die an die Stammaktien von Wells Fargo & Company (WFC) gekoppelt sind. Die Papiere werden voraussichtlich am oder um den 3. Juli 2025 bepreist, am 9. Juli 2025 abgewickelt und laufen (sofern nicht vorzeitig zurückgerufen) bis zum 7. Juli 2028. Jede $1.000-Anleihe bietet eine feste vierteljährliche bedingte Kuponzahlung von $26,375 (10,55 % p.a.), sofern der Schlusskurs von WFC am jeweiligen Beobachtungstag auf oder über der 70 %-Abschwung-Schwelle liegt. Schließt die Aktie an einem der vierteljährlichen Feststellungstage vor Fälligkeit auf oder über der 100 %-Rückruf-Schwelle, wird UBS die Anleihe zum Nennwert zuzüglich des aktuellen Kupons vorzeitig zurückzahlen.
Kapitalrisiko: Sollte WFC am letzten Feststellungstag unter der 70 %-Schwelle schließen, erhalten Anleger nur den Barwert—Nennwert multipliziert mit der prozentualen Abwärtsbewegung—und sind somit einem Totalverlustrisiko von bis zu 100 % ausgesetzt. Anleger partizipieren nicht an Kurssteigerungen von WFC.
Wesentliche strukturelle Merkmale umfassen:
- Emittentenrisiko. Unbesicherte, nicht nachrangige Verbindlichkeiten von UBS AG; Zahlungen hängen von der Zahlungsfähigkeit von UBS ab.
- Geschätzter Anfangswert: $939,50–$969,50, inklusive Händlerprovisionen von 2,25 % und Absicherungskosten.
- Keine Börsennotierung. Eingeschränkter oder kein Sekundärmarkt; Wiederverkaufspreise können deutlich unter dem theoretischen Wert liegen.
- Liquiditäts- und Steuer-Risiken. Unklare steuerliche Einstufung und mögliche Geld-Brief-Spannen bei Sekundärhandel.
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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 Wells Fargo & Company
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 Wells Fargo & Company (Bloomberg Ticker: “WFC 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 $26.375 (equivalent to 10.55% 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. |
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Final price: |
The closing price of the underlying equity on the final determination date. |
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CUSIP / ISIN: |
90308V6R7 / US90308V6R73 |
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Listing: |
The securities will not be listed or displayed on any securities exchange or any electronic communications network. |
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Commission: |
2.25% of the aggregate principal amount. |
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Estimated initial value: |
Expected to be between $939.50 and $969.50 per security. See “Risk Factors” in the preliminary pricing supplement. |
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Preliminary pricing supplement: |
http://www.sec.gov/Archives/edgar/data/1114446/000183988225034970/ubs_424b2-19009.htm |
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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 |
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+40.00% |
$1,000.00 |
|
+30.00% |
$1,000.00 |
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+20.00% |
$1,000.00 |
|
+10.00% |
$1,000.00 |
|
0.00% |
$1,000.00 |
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-10.00% |
$1,000.00 |
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-20.00% |
$1,000.00 |
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-30.00% |
$1,000.00 |
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-31.00% |
$690.00 |
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-40.00% |
$600.00 |
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-50.00% |
$500.00 |
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-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 does the UBS Contingent Income Auto-Callable Security pay?
When can the security be called early by UBS?
How much principal could I lose at maturity?
Is the note tradeable on an exchange?
What is the estimated initial value relative to the $1,000 issue price?
Who bears credit risk for payments?
