Published on 8/20/2013 in the Prospect News Structured Products Daily.
New Issue: UBS prices $3.34 million trigger phoenix autocallables linked to Euro Stoxx, Russell 2000
By Angela McDaniels
Tacoma, Wash., Aug. 20 - UBS AG, London Branch priced $3.34 million of trigger phoenix autocallable optimization securities due Aug 22, 2023 linked to the least performing of the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index closes at or above its coupon barrier, 70% of its initial level, on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 8% per year. Otherwise, no coupon will be paid that quarter.
Beginning Aug. 18, 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 level, 50% of its initial level, 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: | Euro Stoxx 50 and Russell 2000
|
| Amount: | $3,335,500
|
| Maturity: | Aug. 22, 2023
|
| Coupon: | 8% per year, payable quarterly if each index closes at or above coupon barrier 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 level; otherwise, full exposure to decline of worst-performing index
|
| Call: | Beginning Aug. 18, 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: | 2,854.27 for Euro Stoxx 50 and 1,024.30 for Russell 2000
|
| Coupon barriers: | 1,997.99 for Euro Stoxx 50 and 717.01 for Russell 2000; 70% of initial levels
|
| Trigger levels: | 1,427.14 for Euro Stoxx 50 and 512.15 for Russell 2000; 50% of initial levels
|
| Pricing date: | Aug. 16
|
| Settlement date: | Aug. 21
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 3.5%
|
| Cusip: | 90271L767
|
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