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Published on 4/10/2015 in the Prospect News Structured Products Daily.

New Issue: UBS increases maximum amount of E-Tracs linked to Alerian MLP Infrastructure to $2 billion

By Angela McDaniels

Tacoma, Wash., April 10 – 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 $1.75 billion of the notes. The $250 million of additional notes will be sold from time to time at varying prices.

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 was initially zero. It increases 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
Issue:Exchange-traded access securities
Underlying index:Alerian MLP Infrastructure index
Amount:Up to $2 billion, increased from $100 million
Maturity:April 2, 2040
Coupon:Equal to cash distributions that hypothetical holder of index constituents would have been entitled to receive, reduced by accrued tracking fee; payable quarterly
Price:Variable prices
Payout at maturity:Par plus index return minus fee of about 0.85% per year
Put option:On weekly repurchase dates, subject to minimum of 50,000 notes
Call option:From April 7, 2011 onward
Initial index level:487.42
Pricing date:March 31, 2010 for initial $100 million
Settlement date:April 6, 2010 for initial $100 million
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, $250 million on Jan. 3, 2014, $500 million on Aug. 18, 2014 and $250 million on April 10
Underwriter:UBS Investment Bank
Fees:Up to 1.5%
Listing:NYSE Arca: MLPI
Cusip:902641646

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