Published on 6/3/2015 in the Prospect News Structured Products Daily.
New Issue: UBS prices $11.04 million contingent income autocallables tied to three indexes
By Marisa Wong
Madison, Wis., June 3 – UBS AG, London Branch priced $11.04 million of contingent income autocallable securities due June 2, 2020 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the Topix index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent payment at an annual rate of 8.25% if each index closes at or above its coupon barrier level, 75% of its initial level, on the determination date for that quarter.
The notes will be redeemed at par of $10 plus the contingent coupon if each index closes at or above its call threshold level, 95% of its initial level, on any quarterly determination date other than the final date.
If the notes are not called and each index finishes at or above its downside threshold level, 70% of its initial level, the payout at maturity will be par plus the contingent coupon, if any. Otherwise, investors will be fully exposed to the decline of the worst-performing index.
UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
Issuer: | UBS AG, London Branch
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Issue: | Contingent income autocallable securities
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Underlying indexes: | Euro Stoxx 50 index, the Russell 2000 index and the Topix index
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Amount: | $11,037,400
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Maturity: | June 2, 2020
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Coupon: | 8.25% per year, payable quarterly if each index closes at or above coupon barrier level on observation date for that quarter
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Price: | Par of $1,000
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Payout at maturity: | Par unless any index finishes below downside threshold level, in which case exposure to decline of worst-performing index
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Call: | At par if each index closes at or above its call threshold level on any quarterly determination date other than the final date
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Initial levels: | 3,650.71 for Euro Stoxx, 1,253.098 for Russell, 1,672.76 for Topix
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Coupon barrier levels: | 2,738.03 for Euro Stoxx, 939.824 for Russell, 1,254.57 for Topix; 75% of initial levels:
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Downside thresholds: | 2,555.50 for Euro Stoxx, 877.169 for Russell, 1,170.93 for Topix; 70% of initial levels
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Call threshold levels: | 3,468.17 for Euro Stoxx, 1,190.443 for Russell, 1,589.12 for Topix; 95% of initial levels
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Pricing date: | May 28
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Settlement date: | June 2
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Agent: | UBS Securities LLC with Morgan Stanley Smith Barney LLC handling distribution
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Fees: | 3%
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Cusip: | 90274T510
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