Published on 6/28/2016 in the Prospect News Structured Products Daily.
New Issue: UBS prices $1.6 million trigger autocallable contingent yield notes linked to Target
By Wendy Van Sickle
Columbus, Ohio, June 28 – UBS AG, London Branch priced $1.6 million of trigger autocallable contingent yield notes due June 30, 2021 linked to Target Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay contingent monthly coupon at an annual rate of 8% if the stock closes above its 71.8% coupon barrier on the observation date for that month.
The notes will be called at par plus the contingent coupon if the stock closes at or above its initial level on any monthly observation date after one year.
The payout at maturity will be plus the final coupon unless the stock closes below its barrier, in which case investors will be fully exposed to any losses.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying stock: | Target Corp. (Symbol: TGT)
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| Amount: | $1,601,500
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| Maturity: | June 30, 2021
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| Coupon: | Each month, notes pay contingent coupon at rate of 8% per year if Target shares close at or above downside threshold level on observation date
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| Price: | Par of $10.00
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
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| Call: | After one year, automatically at par plus coupon if shares close at or above initial price on any monthly observation date
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| Initial share price: | $69.35
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| Downside threshold: | $49.79, 71.8% of initial share price
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| Pricing date: | June 24
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| Settlement date: | June 30
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 2.5%
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| Cusip: | 90275R760
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