UBS plans callable contingent accrual notes tied to CMS rates, S&P 500

By Angela McDaniels

Tacoma, Wash., June 23 - UBS AG, Jersey Branch plans to price callable contingent accrual notes due June 30, 2025 linked to the 30-year and two-year Constant Maturity Swap rates and the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The interest rate will be 10% multiplied by the proportion of days on which the 30-year CMS rate is greater than or equal to the two-year CMS rate and the S&P 500 closes at or above the index barrier, which is expected to be 75% to 80% of the initial level and will be set at pricing. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning June 30, 2011, the notes will be callable on any interest payment date.

The notes are expected to price June 25 and settle June 30.

UBS Financial Services Inc. and UBS Investment Bank are the underwriters.

© 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.