By Marisa Wong
Morgantown, W.Va., Oct. 6 – UBS AG, London Branch priced $450 million of additional 0% FI Enhanced Global High Yield exchange-traded notes due March 3, 2026 linked to the MSCI World High Dividend Yield USD Gross Total Return Index, according to a 424B3a filing with the Securities and Exchange Commission.
This brings the total issue to $650 million. UBS priced the original $200 million of securities on Feb. 19, 2016.
The payout at maturity will be two times the index return compounded on a quarterly basis, reduced by accrued fees.
Upon each occurrence of a loss rebalancing event, investors will incur a 0.05% reduction in the principal amount.
The notes are callable beginning Feb. 24, 2017.
UBS Securities LLC is the agent.
The notes are listed on the NYSE Arca under the symbol “FIHD.”
| Issuer: | UBS AG, London Branch
|
| Issue: | FI Enhanced Global High Yield ETNs
|
| Underlying index: | MSCI World High Dividend Yield USD Gross Total Return Index
|
| Amount: | $650 million (increased from $200 million)
|
| Maturity: | March 3, 2026
|
| Coupon: | 0%
|
| Price: | Par of $100 for initial $25 million; variable for future tranches
|
| Payout at maturity: | Two times index return compounded on a quarterly basis, reduced by accrued fees; the annual tracking rate 0.80% per year and the financing spread is 0.85% per year; upon each occurrence of a loss rebalancing event, investors will incur a 0.05% reduction in the principal amount
|
| Call option: | Beginning Feb. 24, 2017
|
| Initial index level: | 1,494.907
|
| Pricing date: | Feb. 19, 2016 for original $200 million, Oct. 4 for $450 million reopened notes
|
| Settlement date: | Feb. 24, 2016 for $25 million
|
| Underwriter: | UBS Securities LLC
|
| Fees: | None
|
| Listing: | NYSE Arca: FIHD
|
| Cusip: | 90274D218
|
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