Published on 10/16/2013 in the Prospect News Structured Products Daily.
New Issue: UBS prices $8.1 million 12.5% autocallables linked to U.S. Steel
By Angela McDaniels
Tacoma, Wash., Oct. 16 - UBS AG, London Branch priced $8.1 million of fixed-coupon autocallable securities due Oct. 21, 2014 linked to the common stock of United States Steel Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate is 12.5% per year, payable quarterly.
The notes will be called at par of $10 if United States Steel stock closes at or above the initial price on Jan. 14, 2014, April 14, 2014 or July 14, 2014.
If the final share price is greater than or equal to the downside threshold price, 70% of the initial share price, then the payout at maturity will be par. Otherwise, the payout will be a number of United States Steel shares equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | UBS AG, London Branch
|
| Issue: | Fixed-coupon autocallable securities
|
| Underlying stock: | United States Steel Corp. (Symbol: X)
|
| Amount: | $8,101,140
|
| Maturity: | Oct. 21, 2014
|
| Coupon: | 12.5%, payable quarterly
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par unless final share price is less than downside threshold price, in which case 0.44763 United States Steel shares or, at issuer's option, cash amount equal to value of those shares
|
| Call: | Automatically at par if United States Steel stock closes at or above initial price on Jan. 14, 2014, April 14, 2014 or July 14, 2014
|
| Initial share price: | $22.34
|
| Downside threshold: | $15.64, 70% of initial share price
|
| Pricing date: | Oct. 14
|
| Settlement date: | Oct. 17
|
| Agent: | UBS Securities LLC
|
| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 1.5%
|
| Cusip: | 90271M724
|
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