By Devika Patel
Knoxville, Tenn., June 23 – UBS AG, London Branch priced $2.05 million of trigger callable contingent yield notes due June 29, 2020 linked to the worst performing of the Energy Select Sector SPDR fund and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 16.9% if each fund’s closing level is at least its coupon barrier level, 70% of its initial level, on each trading day of that quarter.
The notes will be callable in whole but not in part on any quarterly observation date other than the final one at par of $10 plus any coupon beginning Sept. 21, 2017.
If the notes are not called and each fund finishes at or above its initial level or neither fund closes below the 70% trigger level during the life of the notes, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing fund’s final level is below its initial level.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying funds: | Energy Select Sector SPDR fund and SPDR S&P Oil & Gas Exploration & Production exchange-traded fund
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| Amount: | $2.05 million
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| Maturity: | June 29, 2020
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| Coupon: | 16.9% per year, payable quarterly if each fund closes at or above its coupon barrier level on each trading day of that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par unless either fund finishes below its initial level and either fund closes below trigger level during the life of notes, in which case 1% loss for each 1% decline of worst performing fund from initial level
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| Call option: | At par plus any coupon on any quarterly observation other than final date beginning Sept. 21, 2017
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| Initial levels: | $65.04 for Energy Select, $31.19 for Oil & Gas
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| Coupon barrier levels: | $45.53 for Energy Select, $21.83 for Oil & Gas; 70% of initial levels
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| Trigger levels: | $45.53 for Energy Select, $21.83 for Oil & Gas; 70% of initial levels
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| Pricing date: | June 21
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| Settlement date: | June 28
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| Agent: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 0.5%
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| Cusip: | 90280V665
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