Published on 12/9/2015 in the Prospect News Structured Products Daily.
New Issue: UBS prices $7.61 million contingent income autocallables linked to Bank of America
By Angela McDaniels
Tacoma, Wash., Dec. 9 – UBS AG, London Branch priced $7.61 million of contingent income autocallable securities with step-up redemption threshold level feature due Dec. 7, 2018 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Bank of America shares close at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 9.2%.
The notes will be called at par of $10 plus the contingent coupon if Bank of America shares close at or above the redemption threshold level price on any quarterly determination date other than the final determination date. The redemption threshold level is 105% of the initial share price for determination dates one through four, 110% of the initial share price for determination dates five through eight and 115% of the initial share price for determination dates nine through 11.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
UBS Securities LLC is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities with step-up redemption threshold level feature
|
| Underlying stock: | Bank of America Corp. (Symbol: BAC)
|
| Amount: | $7,611,480
|
| Maturity: | Dec. 7, 2018
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| Coupon: | 9.2% per year, payable quarterly if Bank of America shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, full exposure to decline in Bank of America shares
|
| Call: | At par plus contingent coupon if Bank of America shares close at or above redemption threshold level on any quarterly determination date other than final determination date
|
| Initial share price: | $17.80
|
| Downside threshold: | $14.24, 80% of initial share price
|
| Redemption threshold: | $18.69, or 105% of initial share price, for determination dates one through four; $19.58, or 110% of initial share price, for determination dates five through eight; and $20.47, or 115% of initial share price, for determination dates nine through 11
|
| Pricing date: | Dec. 4
|
| Settlement date: | Dec. 9
|
| Agent: | UBS Securities LLC
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 2.5%
|
| Cusip: | 90275L128
|
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