Published on 11/26/2014 in the Prospect News Structured Products Daily.
New Issue: UBS prices $3.19 million contingent income autocallables tied to Wynn
By Marisa Wong
Madison, Wis., Nov. 26 – UBS AG, London Branch priced $3.19 million contingent income autocallable securities due Nov. 27, 2017 linked to Wynn Resorts, Ltd. shares, according to an FWP filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly payment at an annual rate of 8.5% if the shares close at or above the 75% downside threshold level on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the applicable call threshold level on any of the first 11 determination dates. The call threshold level is 105% of the initial price for the first year and steps up to 110% of the initial price beginning Nov. 23, 2015 and to 115% of the initial price beginning Nov. 21, 2016.
The payout at maturity will be par plus the final coupon unless the shares finish below its 75% downside threshold level, in which case investors will receive a number of Wynn shares equal to $10 divided by the initial price or, at the issuer’s option, the cash value of those shares.
UBS Securities LLC is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | UBS AG, London Branch
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Wynn Resorts, Ltd. (Symbol: WYNN)
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| Amount: | $3.19 million
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| Maturity: | Nov. 27, 2017
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| Coupon: | Contingent quarterly payment of 8.5% per year if shares close at or above downside threshold level on quarterly observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon unless shares finish below downside threshold level, in which case a number of Wynn shares equal to $10 divided by initial price or, at issuer’s option, cash value of those shares
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| Call: | At par plus contingent coupon if stock closes at or above call threshold level on any of first 11 determination dates
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| Initial price: | $179.64
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| Downside threshold: | $134.73, 75% of initial price
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| Call threshold: | $188.62, 105% of the initial price, for first four dates; $197.60, 110% of the initial price, for next four dates; $206.59, 115% of the initial price, for last three dates
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| Pricing date: | Nov. 21
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| Settlement date: | Nov. 26
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| Agent: | UBS Securities LLC with distribution through Morgan Stanley Wealth Management
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| Fees: | 2.5%
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| Cusip: | 90274F213
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