UBS to sell optimization notes with contingent return on fund basket

By Marisa Wong

Madison, Wis., Aug. 10 - UBS AG, London Branch plans to price 0% optimization securities with contingent return due Feb. 29, 2012 linked to a basket of exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

The basket is comprised of the iShares MSCI EAFE index fund with a 70% weight and the iShares MSCI Emerging Markets index fund with a 30% weight.

If the basket return is greater than 9%, the payout at maturity will be par of $10 plus the basket gain, up to a maximum gain of 15% to 20%. The exact cap will be set at pricing.

If the basket return is less than or equal to 9% but at least negative 25%, investors will receive par plus the contingent return of 9%.

Investors will share fully in losses if the basket declines beyond 25%.

The securities (Cusip: 90267C607) will price on Aug. 26 and settle on Aug. 31.

UBS Financial Services Inc. and UBS Securities LLC are the underwriters.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.