By Angela McDaniels
Tacoma, Wash., Jan. 3 - UBS AG, Jersey Branch registered to sell an additional $250 million of exchange-traded access securities due April 2, 2040 linked to the Alerian MLP Infrastructure index, according to a 424B3 filing with the Securities and Exchange Commission.
The company had previously registered to sell up to $1 billion of the notes. The $250 million of additional notes will be sold from time to time for a price of up to 101.5% of their current issuance amount.
"Issuance amount" means a value equal to (i) par of $25 multiplied by the index performance ratio less (ii) the accrued tracking fee plus (iii) the coupon amount plus (iv) the adjusted coupon amount, if any.
Interest is payable quarterly and equals the sum of the cash distributions that a hypothetical holder of the index constituents would have been entitled to receive during that quarter, reduced by the accrued tracking fee.
The payout at maturity will be par plus the index return, which could be positive or negative, minus the accrued tracking fee.
The fee amount is initially zero. It will increase each day by an amount equal to 0.85% per year multiplied by par plus the index return on that day.
The notes are putable on weekly repurchase dates, subject to a minimum of 50,000 notes. The notes became callable on April 7, 2011. The payout upon redemption will be par plus the index return minus the accrued tracking fee and, if the notes are being put back by their holder, minus a redemption fee of 0.125% of par.
The notes are listed on NYSE Arca under the symbol "MLPI."
The index provides an enhanced liquid subset of master limited partnerships that includes only midstream energy transportation and storage assets and selects those companies that are infrastructure hard-asset focused.
UBS Investment Bank is the underwriter.
Issuer: | UBS AG, Jersey Branch
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Issue: | Exchange-traded access securities
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Underlying index: | Alerian MLP Infrastructure index
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Amount: | Up to $1.25 billion, increased from $100 million
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Maturity: | April 2, 2040
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Coupon: | Equal to cash distributions that hypothetical holder of index constituents would have been entitled to receive, reduced by accrued tracking fee; payable quarterly
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Price: | Variable prices
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Payout at maturity: | Par plus index return minus fee of about 0.85% per year
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Put option: | On weekly repurchase dates, subject to minimum of 50,000 notes
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Call option: | From April 7, 2011 onward
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Initial index level: | 487.42
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Pricing date: | March 31, 2010 for initial $100 million
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Settlement date: | April 6, 2010 for initial $100 million
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Upsizing dates: | Maximum issuance amount was increased by $100 million on July 2, 2010, $300 million on Nov. 12, 2010, $100 million on April 4, 2013, $400 million on July 12, 2013 and $250 million on Jan. 3
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Underwriter: | UBS Investment Bank
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Fees: | Up to 1.5%
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Listing: | NYSE Arca: MLPI
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Cusip: | 902641646
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