UBS extends exchange offer for five series of ETracs ETNs

Chicago, April 30 – UBS AG extended an exchange offer for five series of its exchange-traded access securities, according to a press release on Thursday.

The notes eligible for exchange are part of a series of UBS AG debt securities titled “medium-term notes, series A” co-obligated by UBS AG and UBS Switzerland AG. In exchange, holders are being offered corresponding ETNs that are part of a series of UBS AG debt securities entitled “medium-term notes, series B” issued by UBS AG as sole obligor.

The company said the economic terms of each series B ETN issued in exchange for a series A ETN are intended to be identical, except UBS Switzerland is a co-obligor of the series A ETNs but is not a co-obligor of the series B ETNs.

The $25-par notes are being offered for exchange on a one-for-one basis.

The final expiration date for the exchange offers is being extended to Aug. 5. It was initially set to expire at 5 p.m. ET on May 1.

In exchange for its:

• 17.9 million ETracs Alerian MLP index ETNs due July 18, 2042 (NYSE Arca: AMU), the company is offering ETracs Alerian MLP Index ETNs, series B, due July 18, 2042 (NYSE Arca: AMUB);

• 4,355,000 ETracs linked to the Wells Fargo Business Development Company index due April 26, 2041 (NYSE Arca: BDCS), the company is offering ETracs Wells Fargo Business Development Company Index ETNs, series B, due April 26, 2041 (NYSE Arca: BDCZ);

• 2,938,680 ETracs linked to the Bloomberg Commodity Index Total Return due Oct. 31, 2039 (NYSE Arca: DJCI), the company is offering ETracs Bloomberg Commodity Index Total Return ETNs, series B, due Oct. 31, 2039 (NYSE Arca: DJCB);

• 46.85 million ETracs linked to the Alerian MLP Infrastructure index due April 2, 2040 (NYSE Arca: MLPI), the company is offering ETracs Alerian MLP Infrastructure Index ETNs, series B, due April 2, 2040 (NYSE Arca: MLPB); and

• 4,728,590 ETracs linked to the UBS Bloomberg Constant Maturity Commodity Index Total Return due April 5, 2038 (NYSE Arca: UCI), the company is offering ETracs UBS Bloomberg Constant Maturity Commodity Index Total Return ETNs, series B, due April 5, 2038 (NYSE Arca: UCIB).

The offer initially also covered:

• 13.1 million 2xLeveraged Long ETracs due May 24, 2041 linked to the Wells Fargo Business Development Company index (NYSE Arca: BDCL), the company is offering 2xLeveraged Long ETracs Wells Fargo Business Development Company Index ETNs, series B, due May 24, 2041 (NYSE Arca: LBDC); and

• 30.24 million ETracs Monthly Pay 2xLeveraged Mortgage REIT ETNs due Oct. 16, 2042 (NYSE Arca: MORL), the company is offering ETracs Monthly Pay 2xLeveraged Mortgage REIT ETNs, series B, due Oct. 16, 2042 (NYSE Arca: MRRL).

The offers for the BDCL and MORL ETracs were terminated, though, as of March 16 as a result of the mandatory redemption of those securities following the occurrence of an “Acceleration Upon Minimum Indicative Value” on that date, as previously reported.

The offer also initially covered:

• 17 million ETracs Monthly Pay 2xLeveraged Closed-End Fund ETNs due Dec. 10, 2043 (NYSE Arca: CEFL), the company is offering ETracs Monthly Pay 2xLeveraged Closed-End Fund ETNs, series B, due Dec. 10, 2043 (NYSE Arca: CEFZ);

The offer for the CEFL was terminated on March 18 as a result of its mandatory redemption following the occurrence of an “Acceleration Upon Minimum Indicative Value” on that date, also previously reported.

Settlement for exchanges will take place on a rolling basis between now and the end of the final exchange.

The ninth exchange period begins May 1 and ends May 19, with settlement on May 21.

The tenth exchange period begins May 19 and ends June 4, with settlement on June 8.

The eleventh exchange period begins June 4 and ends June 19, with settlement on June 23.

The twelfth exchange period begins June 19 and ends July 7, with settlement on July 9.

The thirteenth exchange period begins July 7 and ends July 21, with settlement on July 23.

The final exchange period begins July 21 and ends Aug. 5, with settlement on Aug. 7.

UBS Securities LLC (877 387-2275 or etracs@ubs.com) is the dealer manager for the exchange offers. D.F. King & Co., Inc. (212 269-5550, 800 591-8269 or ubs@dfking.com) is acting as the exchange agent and information agent.

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