By Angela McDaniels
Tacoma, Wash., April 12 – UBS AG, London Branch priced $275,000 of inverse phoenix autocallable notes with static buffer and memory interest due Oct. 13, 2016 linked to the inverse performance of the relevant nearby Nymex-traded West Texas Intermediate light sweet crude oil futures contract, according to a 424B2 filing with the Securities and Exchange Commission.
If the official settlement price on July 8, 2016 is less than or equal to the interest barrier, 130% of the initial price, the notes will pay a contingent interest payment of $50 per $1,000 principal amount of notes. If the average of the official settlement prices on the five trading days ending Oct. 10, 2016 is less than or equal to the interest barrier, the notes will pay a contingent interest payment of $50 plus any previously unpaid contingent interest payment.
The notes will be automatically called if the official settlement price on July 8, 2016 is less than or equal to the initial price. If the notes are called, holders will receive par plus any contingent interest payment otherwise due.
If the notes are not called and the underlying return is equal to or less than 30%, the payout at maturity will be par. If the underlying return is greater than 30%, investors will lose 1.4286% for every 1% that the return exceeds 30%.
The final price will be the average of the official settlement prices on the five trading days ending Oct. 10, 2016.
The agents are J.P. Morgan Securities LLC and UBS Investment Bank.
| Issuer: | UBS AG, London Branch
|
| Issue: | Inverse phoenix autocallable notes with static buffer and memory interest
|
| Underlying commodity: | West Texas Intermediate light sweet crude oil
|
| Amount: | $275,000
|
| Maturity: | Oct. 13, 2016
|
| Coupon: | If official settlement price on July 8, 2016 is less than or equal to interest barrier, notes pay contingent interest payment of $50; if final price is less than or equal to interest barrier, notes pay contingent interest payment of $50 plus any previously unpaid contingent interest payment
|
| Price: | Par
|
| Payout at maturity: | If underlying return is equal to or less than 30%, par; otherwise, 1.4286% loss for every 1% that return exceeds 30%.
|
| Call: | Automatically called if official settlement price on July 8, 2016 is less than or equal to initial price; if notes are called, holders receive par plus any contingent interest payment otherwise due
|
| Initial price: | $39.72
|
| Final price: | Average of official settlement prices on five trading days ending Oct. 10, 2016
|
| Interest barrier: | $51.64, 130% of initial price
|
| Pricing date: | April 8
|
| Settlement date: | April 13
|
| Agents: | J.P. Morgan Securities LLC and UBS Investment Bank
|
| Fees: | 0.5%
|
| Cusip: | 90270KGN3
|
© 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.
