By Angela McDaniels
Tacoma, Wash., Aug. 5 - UBS AG, London Branch priced $10 million of trigger phoenix autocallable optimization securities due Aug. 7, 2023 linked to the least performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index closes at or above its trigger level - 50% of its initial level - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 5% per year. Otherwise, no coupon will be paid that quarter.
Beginning Aug. 1, 2014, the notes will be called at par of $10 plus the contingent coupon if each index closes at or above its initial level on any quarterly observation date.
If the notes are not called and each index finishes at or above its trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to decline of the worst-performing index from its initial level.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $10 million
|
| Maturity: | Aug. 7, 2023
|
| Coupon: | 5% per year, payable quarterly if each index closes at or above trigger price on observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if each index finishes at or above trigger price; otherwise, full exposure to decline of worst-performing index
|
| Call: | Beginning Aug. 1, 2014, notes will be called automatically at par plus contingent coupon if both indexes close at or above initial levels on a quarterly observation date
|
| Initial index levels: | 1,059.88 for Russell 2000 and 1,706.87 for S&P 500
|
| Trigger levels: | 529.94 for Russell 2000 and 853.44 for S&P 500; 50% of initial levels
|
| Pricing date: | Aug. 1
|
| Settlement date: | Aug. 6
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 3.5%
|
| Cusip: | 90271L577
|
© 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.
