By Jennifer Chiou
New York, March 10 – UBS AG, London Branch priced an initial $25 million principal amount of exchange-traded access securities due March 13, 2045 linked to the ISE Exclusively Homebuilders index, according to a 424B2 filing with the Securities and Exchange Commission.
The company sold the ISE Exclusively Homebuilders exchange-traded notes at par of $25 to underwriter UBS Securities LLC.
UBS plans to issue up to $100 million of the notes. The remainder will be sold from time to time at varying prices.
The ETNs do not pay a coupon.
The notes are putable, subject to a minimum of 50,000 notes and a redemption fee of 0.125%. They are callable in whole beginning on March 19, 2015.
The notes have been approved for listing on the NYSE Arca under the symbol “HOMX.”
Index
The securities provide a return linked to the total return version of the ISE Exclusively Homebuilders index, which is focused on companies that engage in the development and construction of homes and communities.
The index attempts to capture at least two-thirds of the entire homebuilding industry’s market capitalization and uses a modified market capitalization-weighted methodology, which is designed to prevent a few large stocks from dominating the index.
Payout
The payout at maturity will be the current principal amount multiplied by the daily index factor, minus a fee amount of 0.4% per year.
The current principal amount is $25 on the initial trade date.
The daily index factor on any index business day will equal (a) the index closing level on that date divided by (b) the index closing level on the immediately preceding index business day.
| Issuer: | UBS AG, London Branch
|
| Issue: | Exchange-traded access securities
|
| Underlying index: | ISE Exclusively Homebuilders index
|
| Amount: | Up to $100 million
|
| Maturity: | March 13, 2045
|
| Coupon: | 0%
|
| Face amount: | $25
|
| Payout at maturity: | Current principal amount multiplied by the daily index factor, minus a fee amount of 0.4% per year
|
| Call option: | In whole beginning on March 19, 2015
|
| Put option: | At any time, subject to minimum of 50,000 notes and 0.125% redemption fee
|
| Pricing date: | March 10
|
| Settlement date: | March 13 (for $25 million)
|
| Underwriter: | UBS Securities LLC
|
| Fees: | None
|
| Listing: | NYSE Arca: HOMX
|
| Cusip: | 90274D838
|
|
|
|
|
© 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.
