By Toni Weeks
San Luis Obispo, Calif., Oct. 16 - UBS AG, London Branch priced $2.96 million of trigger phoenix autocallable optimization securities due Oct. 17, 2018 linked to Occidental Petroleum Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Occidental stock closes at or above the trigger price - 74.5% of the initial share price - on a monthly observation date, the issuer will pay a contingent annualized coupon of 8% for that month.
If the shares close at or above the initial price on a monthly observation date after one year, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Occidental shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will be fully exposed to the decline in the share price from the initial price.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Occidental Petroleum Corp. (Symbol: OXY)
|
| Amount: | $2,961,970
|
| Maturity: | Oct. 17, 2018
|
| Coupon: | 8%, payable monthly if stock closes at or above trigger price on observation date for that month
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if Occidental shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | At par plus contingent coupon if Occidental shares close at or above initial price on a monthly observation date beginning Oct. 14, 2014
|
| Initial share price: | $95.49
|
| Trigger price: | $71.14, 74.5% of initial share price
|
| Pricing date: | Oct. 11
|
| Settlement date: | Oct. 17
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 2.5%
|
| Cusip: | 90271M740
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
