Published on 9/16/2014 in the Prospect News Structured Products Daily.
New Issue: UBS prices $2.76 million contingent income autocallables on Manitowoc
By Marisa Wong
Madison, Wis., Sept. 16 – UBS AG, London Branch priced $2.76 million of contingent income autocallable securities due Sept. 18, 2015 linked to Manitowoc Co., Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.5% if the stock closes at or above its 74% downside threshold level on a determination date for that quarter.
The notes will be redeemed at par plus the contingent coupon if the stock closes at or above its initial level on any of the first three determination dates.
If the notes are not called, the payout at maturity will be par plus the final contingent coupon unless the stock finishes below its 74% downside threshold level, in which case investors will receive a number of shares of Manitowoc stock equal to $10 divided by the initial share price or, at the issuer’s option, the cash value of those shares.
UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC will handle distribution.
| Issuer: | UBS AG, London Branch
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Manitowoc Co., Inc. (Symbol: MTW)
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| Amount: | $2,758,000
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| Maturity: | Sept. 18, 2015
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| Coupon: | 10.5% per year, payable quarterly if stock closes at or above its downside threshold level on the determination date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | If stock finishes at or above its downside threshold level, par plus the final contingent coupon; otherwise, number of shares of Manitowoc stock equal to $10 divided by initial share price or, at issuer’s option, cash value of those shares
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| Call: | At par plus the contingent coupon if stock closes at or above its initial level on any of the first three determination dates
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| Initial level: | $28.11
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| Barrier level: | $20.80, 74% of initial level
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| Pricing date: | Sept. 12
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| Settlement date: | Sept. 17
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| Agent: | UBS Securities LLC with Morgan Stanley Smith Barney LLC handling distribution
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| Fees: | 1.75% (1.25% sales commission, 0.5% structuring fee)
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| Cusip: | 90273L641
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