By Wendy Van Sickle
Columbus, Ohio, May 26 – UBS AG, London Branch priced $50 million of 0% exchangeable notes due May 25, 2028 linked to the common stock of Merck & Co., according to a 424B2 filing with the Securities and Exchange Commission.
There is a $7.5 million upsize option.
The payout at maturity will be the greater of par and the arithmetic mean of the conversion values on May 17, 2028, May 18, 2028 and May 19, 2028.
On each valuation date, the conversion value is equal to the share exchange amount multiplied by the closing share price of Merck on that valuation date.
The share exchange amount, 9.608, is equal to $1,000 divided by the initial share price divided by the conversion premium amount of 1.305. The share exchange amount will be adjusted for any regular cash dividends that exceed or fall short of the $0.65 target cash dividend.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Exchangeable notes
|
| Underlying stock: | Merck & Co.
|
| Amount: | $50 million
|
| Greenshoe: | $7.5 million
|
| Maturity: | May 25, 2028
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Greater of par and the arithmetic mean of the conversion values on May 17, 2028, May 18, 2028 and May 19, 2028
|
| Initial share price: | $79.7516
|
| Conversion value: | Share exchange amount multiplied by the closing share price on that valuation date
|
| Share exchange amount: | 9.608, which is equal to $1,000 divided by the initial share price divided by the conversion premium amount
|
| Conversion premium amount: | 1.305
|
| Target cash dividend: | $0.65
|
| Pricing date: | May 20
|
| Settlement date: | May 26
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 0%
|
| Cusip: | 90276BZH9
|
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