By Angela McDaniels
Seattle, Aug. 6 - UBS AG priced a $5 million issue of 0% autocallable optimization securities with contingent protection due Feb. 11, 2009 linked to the Amex Gold BUGS index, according to a 424B2 filing with the Securities and Exchange Commission.
The securities will be called at increasing premiums if the index is at or above its initial level on any of three observation dates. The redemption amount will be par of $10 plus 18.73% if the securities are called Aug. 8, 2008, par plus 23.41% if called Nov. 6, 2008 and par plus 28.1% if called Feb. 6, 2009.
If the securities are not called, the payout at maturity will be par unless the index falls by 20% or more during the life of the securities and the final index level is below the initial index level, in which case investors will be fully exposed to the decline.
UBS Investment Bank and UBS Financial Services Inc. are the underwriters.
| Issuer: | UBS AG
|
| Issue: | Autocallable optimization securities with contingent protection
|
| Underlying index: | Amex Gold BUGS
|
| Amount: | $5 million
|
| Maturity: | Feb. 11, 2009
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Call: | Automatically if index is at or above its initial level on an observation date; payout will be par plus 18.73% if called Aug. 8, 2008, par plus 23.41% if called Nov. 6, 2008 and par plus 28.1% if called Feb. 6, 2009
|
| Payout at maturity: | If index closes below the trigger level during the life of the securities and finishes below the initial level, full exposure to the index decline; otherwise, par
|
| Initial index level: | 341.74
|
| Trigger level: | 273.39, 80% of initial level
|
| Pricing date: | Aug. 2
|
| Underwriters: | UBS Investment Bank and UBS Financial Services Inc.
|
| Fees: | 1.75%
|
© 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.
