By Marisa Wong
Madison, Wis., April 25 - UBS AG, London Branch priced $10 million of 0% exchange-traded access securities due April 30, 2042 linked to the Dow Jones-UBS Commodity Index 2-4-6 Forward Blend Total Return, according to a 424B2 filing with the Securities and Exchange Commission.
UBS plans to offer a total of $100 million of the E-Tracs. The initial tranche priced at par. The remainder of the securities will be sold at prevailing market prices.
The index, which launched in December, is an equally weighted basket of the two-month, four-month and six-month forward versions of the Dow Jones-UBS Commodity index. The notional exposure to the three component indexes is rebalanced at the end of every month so that each index represents one-third of the basket.
The securities have a principal amount of $25 each.
The securities are putable at any time, subject to a minimum of 50,000 securities, and are callable in whole on any day beginning April 30, 2013. The notes can also be called if the closing indicative value of the notes ever falls to or below $5.
The payout upon redemption or at maturity will be par plus the index return, which could be positive or negative, and minus a fee amount.
The fee amount is initially zero. It will increase each day by an amount equal to 0.7% per year multiplied by par plus the index return on that day.
The securities have been approved for listing on the NYSE Arca under the symbol "BLND."
UBS Securities LLC is the agent.
| Issuer: | UBS AG, London Branch
|
| Issue: | Exchange-traded access securities
|
| Underlying index: | Dow Jones-UBS Commodity Index 2-4-6 Forward Blend Total Return
|
| Amount: | $10 million
|
| Maturity: | April 30, 2042
|
| Coupon: | 0%
|
| Price: | Par of $25
|
| Payout at maturity: | Par plus index return and minus a fee; fee amount is initially zero and will increase each day by 0.7% per year multiplied by par plus index return on that day
|
| Call option: | In whole on any day beginning April 30, 2013 or if closing indicative value ever falls to or below $5
|
| Put option: | At any time, subject to minimum of 50,000 notes
|
| Pricing date: | April 25
|
| Settlement date: | April 30
|
| Agent: | UBS Securities LLC
|
| Fees: | None
|
| Cusip: | 90267L201
|
| Listing: | NYSE Arca: BLND
|
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