Published on 8/27/2009 in the Prospect News Structured Products Daily.
New Issue: UBS prices $313,000 10.5% reverse convertibles linked to Wells Fargo
By Angela McDaniels
Tacoma, Wash., Aug. 27 - UBS AG priced $313,000 of reverse convertible notes due Nov. 30, 2009 linked to the common stock of Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes pay 2.625% for an annualized coupon of 10.5%. Interest is payable monthly.
The payout at maturity will be par unless Wells Fargo stock falls below the trigger price - 70% of the initial share price - during the life of the notes and finishes below the initial price, in which case investors will receive a number of Wells Fargo shares equal to $1,000 divided by the initial price.
UBS Securities LLC is the underwriter.
Issuer: | UBS AG
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Issue: | Reverse convertible notes
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Underlying stock: | Wells Fargo & Co. (NYSE: WFC)
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Amount: | $313,000
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Maturity: | Nov. 30, 2009
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Coupon: | 10.5%, payable monthly
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Price: | Par
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Payout at maturity: | If Wells Fargo stock falls below trigger price during life of notes and finishes below initial price, 36.206 Wells Fargo shares; otherwise, par
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Initial share price: | $27.62
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Trigger price: | $19.33, 70% of initial share price
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Pricing date: | Aug. 26
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Settlement date: | Aug. 31
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Underwriter: | UBS Securities LLC
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Fees: | 2.25%
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