Published on 1/31/2013 in the Prospect News Structured Products Daily.
New Issue: UBS prices $13.31 million trigger phoenix notes on Euro Stoxx, S&P 500
By Marisa Wong
Madison, Wis., Jan. 31 - UBS AG, London Branch priced $13.31 million of trigger phoenix autocallable optimization securities due Jan. 31, 2018 linked to the Euro Stoxx 50 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index closes at or above the trigger level, 70% of the initial level, on any quarterly observation date, the notes will pay a contingent coupon of 8% per year for that quarter. Otherwise, no coupon will be paid that quarter.
If both indexes close at or above their initial levels on any quarterly observation date after one year, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called, the payout at maturity will be par plus the contingent coupon unless either index finishes below the trigger level, in which case investors will be fully exposed to the decline of the lesser-performing index.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying indexes: | Euro Stoxx 50 index and S&P 500 index
|
| Amount: | $13,314,360
|
| Maturity: | Jan. 31, 2018
|
| Coupon: | 8% per year if each index closes at or above trigger level on quarterly observation date; otherwise, no coupon that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon unless either index finishes below trigger level, in which case full exposure to decline of lesser-performing index
|
| Call: | At par plus contingent coupon if both indexes close at or above initial levels on any quarterly observation date beginning Jan. 30, 2014
|
| Initial levels: | 2,749.27 for Euro Stoxx, 1,507.84 for S&P
|
| Trigger levels: | 1,924.49 for Euro Stoxx, 1,055.49 for S&P; 70% of initial levels
|
| Pricing date: | Jan. 29
|
| Settlement date: | Jan. 31
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 2.5%
|
| Cusip: | 90271B322
|
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