By Marisa Wong
Madison, Wis., March 27 – UBS AG, London Branch priced $14.59 million of European-style, cash-settled call warrants expiring March 26, 2018 linked to the Health Care Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notional amount for the 100,655 warrants is $1,000 per warrant. The initial investment will be $145 per warrant, or 14.5% of the notional amount. The minimum purchase requirement is 69 warrants.
The warrants will be automatically exercised on the expiration date if the fund’s final level is greater than the initial fund level. The cash settlement amount will be the greater of (a) the notional amount multiplied by the fund return and (b) zero.
The fund return must be greater than 14.5% for investors to receive a positive return on their initial investments.
If the fund’s final level is equal to or less than the initial fund level, the warrants will expire worthless and investors will lose their entire initial investments in the warrants.
J.P. Morgan Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Call warrants
|
| Amount: | $14,594,975
|
| Underlying fund: | Health Care Select Sector SPDR fund
|
| Warrants: | 100,655
|
| Notional amount: | $1,000 each
|
| Price: | $145 per warrant, 14.5% of notional amount
|
| Expiration date: | March 26, 2018
|
| Cash settlement date: | March 29, 2018
|
| Payout: | If fund gains, warrants will be automatically exercised and investors will receive greater of (a) notional amount per warrant multiplied by fund return and (b) zero; otherwise, warrants will expire worthless and investors will receive nothing
|
| Initial fund price: | $72.67
|
| Pricing date: | March 25
|
| Settlement date: | March 30
|
| Agents: | J.P. Morgan Securities LLC and UBS Investment Bank
|
| Fees: | $6.50 per warrant
|
| Cusip: | 90274P690
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