Published on 9/30/2013 in the Prospect News Structured Products Daily.
New Issue: UBS prices $7.3 million contingent income autocallables on three indexes
By Susanna Moon
Chicago, Sept. 30 - UBS AG, London Branch priced $7.3 million of contingent income autocallable securities due Sept. 28, 2018 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the Topix index, according to a 424B2 with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.5% if each index closes at or above its coupon barrier level, 75% of its initial index level, on a determination date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any of the first 19 determination dates.
If each index finishes at or above its 50% downside threshold level, the payout at maturity will be par plus the final contingent coupon.
Otherwise, investors will be fully exposed to any losses of the worst performing index.
UBS Securities LLC is the agent with Morgan Stanley Smith Barney LLC handling distribution.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | Euro Stoxx 50, Russell 2000, Topix
|
| Amount: | $7,297,770
|
| Maturity: | Sept. 28, 2018
|
| Coupon: | 11.5% per year, payable quarterly if each index closes at or above its coupon barrier level on the determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If each index finishes at or above its downside threshold level, par plus the final contingent coupon; otherwise, full exposure to losses of worst performing index
|
| Call: | At par plus the contingent coupon if each index closes at or above its initial level on any of the first 19 determination dates
|
| Initial index levels: | 2,927.35 for Euro Stoxx, 1,073.51 for Russell and 1,211.15 for Topix
|
| Coupon barrier levels: | 2,195.51 for Euro Stoxx, 805.13 for Russell and 908.36 for Topix; 75% of initial levels
|
| Downside threshold: | 1,463.68 for Euro Stoxx, 536.76 for Russell and 605.58 for Topix; 50% of initial levels
|
| Pricing date: | Sept. 25
|
| Settlement date: | Sept. 30
|
| Agent: | UBS Securities LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 3%
|
| Cusip: | 90271M435
|
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