By Marisa Wong
Los Angeles, July 7 – UBS AG, London Branch priced $50 million principal amount of exchange-traded access securities due June 21, 2050 linked to the Alerian Midstream Energy index, according to a 424B3 filing with the Securities and Exchange Commission.
The company sold the exchange-traded notes at par of $25 to underwriter UBS Securities LLC.
UBS plans to issue up to $400 million of the notes. The remainder will be sold from time to time at varying prices.
The ETNs provide an unleveraged long exposure to the performance of the Alerian Midstream Energy index, which is a composite of North American energy infrastructure companies that earn the majority of their cash flow from midstream energy activities involving energy commodities.
The ETNs may pay a coupon. The coupon amount will equal the sum of the cash distributions that a hypothetical holder of index constituent securities would have been entitled to receive in respect of the securities during the relevant period. Interest, if any, is payable quarterly.
The payout at maturity will be the closing indicative value on the final valuation date.
The closing indicative value is recalculated each calendar day to reflect the performance of the index and is equal to the current principal amount on that day plus accrued dividends.
The current principal amount was $25.00 on the initial trade date. On any subsequent day, the current principal amount is equal to the current principal amount on the previous calendar day times the index factor, less a daily tracking fee of 0.75% per year.
The index factor on any day is the closing level of the index on that day divided by the index closing level on the immediately preceding day.
The notes are putable, subject to a minimum of 50,000 notes and a redemption fee of 0.125%. They are callable in whole through and including the maturity date.
The notes will be listed on the NYSE Arca under the symbol “AMNA.”
| Issuer: | UBS AG, London Branch
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| Issue: | Etracs Alerian Midstream Energy Index ETNs
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| Underlying index: | Alerian Midstream Energy index
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| Amount: | Up to $400 million
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| Maturity: | June 21, 2050
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| Coupon: | If payable, quarterly amount equal to the sum of the cash distributions that a hypothetical holder of index constituent securities would have been entitled to receive in respect of the securities during the relevant period
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| Face amount: | $25
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| Price: | Par for initial $50 million
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| Payout at maturity: | Current principal amount plus index return minus daily tracking fee of 0.75% per year
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| Call option: | In whole at any time
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| Put option: | At any time, subject to minimum of 50,000 notes and 0.125% redemption fee
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| Initial closing level: | 335.0383
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| Pricing date: | June 19 for $50 million
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| Settlement date: | June 24 for $50 million
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| Underwriter: | UBS Securities LLC
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| Listing: | NYSE Arca: AMNA
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| Cusip: | 90269A351
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