Published on 11/4/2013 in the Prospect News Structured Products Daily.
New Issue: UBS prices $7.03 million contingent income autocallables linked to three indexes
By Marisa Wong
Madison, Wis., Nov. 4 - UBS AG, London Branch priced $7.03 million of contingent income autocallable securities due Nov. 5, 2020 linked to the worst performing of the Euro Stoxx Banks 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% 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 27 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, if any. 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 Banks, Russell 2000, Topix
|
| Amount: | $7,028,640
|
| Maturity: | Nov. 5, 2020
|
| Coupon: | 11% 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 27 determination dates
|
| Initial index levels: | 139.52 for Euro Stoxx, 1,100.15 for Russell and 1,194.26 for Topix
|
| Coupon barrier levels: | 104.64 for Euro Stoxx, 825.11 for Russell and 895.70 for Topix; 75% of initial levels
|
| Downside threshold: | 69.76 for Euro Stoxx, 550.08 for Russell and 597.13 for Topix; 50% of initial levels
|
| Pricing date: | Oct. 31
|
| Settlement date: | Nov. 5
|
| Agent: | UBS Securities LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 3.5%
|
| Cusip: | 90271R202
|
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