Published on 6/5/2012 in the Prospect News Structured Products Daily.
New Issue: UBS prices $1.21 million capped knock-out notes on basket of 15 stocks
By Toni Weeks
San Diego, June 5 - UBS AG, London Branch priced $1.21 million of 0% capped knock-out notes due Dec. 4, 2013 linked to an equally weighted basket of 15 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying stocks are Caterpillar Inc., Chicago Bridge & Iron Co. NV, Cummins Inc., Deere & Co., Dow Chemical Co., E.I. du Pont de Nemours and Co., Fluor Corp., General Electric Co., NextEra Energy, Inc., Nucor Corp., Rock-Tenn Co., Rockwood Holdings, Inc., Union Pacific Corp., United Parcel Service, Inc. and Wesco International, Inc.
A knock-out event occurs if the basket falls by more than 25% from the initial level on the final valuation day.
If a knock-out event does not occur, the payout at maturity is par plus the greater of the 6% contingent minimum return and the basket return, subject to a maximum return of 25%.
If a knock-out event occurs, the payout at maturity will be par plus the basket return, with full exposure to losses.
JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the agents.
| Issuer: | UBS AG, London Branch.
|
| Issue: | Capped knock-out notes
|
| Underlying stocks: | Caterpillar Inc., Chicago Bridge & Iron Co. NV, Cummins Inc., Deere & Co., Dow Chemical Co., E.I. du Pont de Nemours and Co., Fluor Corp., General Electric Co., NextEra Energy, Inc., Nucor Corp., Rock-Tenn Co., Rockwood Holdings, Inc., Union Pacific Corp., United Parcel Service, Inc. and Wesco International, Inc.
|
| Amount: | $1,214,000
|
| Maturity: | Dec. 4, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If basket falls by more than 25% from initial level on Nov. 29, 2013 final valuation date, par plus basket return; otherwise, par plus greater of 6% and basket return, subject to maximum return of 25%
|
| Initial basket level: | 100
|
| Knock-out buffer: | 25% of initial level
|
| Pricing date: | June 1
|
| Settlement date: | June 6
|
| Agents: | J.P. Morgan Securities LLC and UBS Investment Bank
|
| Fees: | 1.25%
|
| Cusip: | 902674HZ6
|
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