By Marisa Wong
Madison, Wis., Nov. 12 - UBS AG, Jersey Branch priced another $100 million of Exchange-Traded Access Securities due April 2, 2040 linked to the Alerian MLP Infrastructure index, according to a 424B3 filing with the Securities and Exchange Commission.
The total issue amount now stands at $500 million.
The notes have a principal amount of $25 each. UBS said it would sell the notes from time to time at up to 101.5% of par.
Interest is payable quarterly and equals the sum of the cash distributions that a hypothetical holder of the index constituents would have been entitled to receive during that quarter, reduced by the accrued tracking fee.
The payout at maturity will be par plus the index return, which could be positive or negative, minus the accrued tracking fee.
The fee amount is initially zero. It will increase each day by an amount equal to 0.85% per year multiplied by par plus the index return on that day.
The notes are putable on weekly repurchase dates, subject to a minimum of 50,000 notes. UBS can call the notes beginning April 7, 2011. The payout upon redemption will be par plus the index return minus the accrued tracking fee and, if the notes are being put back by their holder, minus a redemption fee of 0.125% of par.
The notes have been approved for listing on NYSE Arca under the symbol "MLPI."
The index provides an enhanced liquid subset of master limited partnerships that includes only midstream energy transportation and storage assets and selects those companies that are infrastructure hard-asset focused.
UBS Investment Bank is the underwriter.
| Issuer: | UBS AG, Jersey Branch
|
| Issue: | EXCHANGE-TRADED ACCESS SECURITIES
|
| Underlying index: | Alerian MLP Infrastructure
|
| Amount: | $500 million (up from $200 million)
|
| Maturity: | April 2, 2040
|
| Coupon: | Equal to the cash distributions that a hypothetical holder of the index constituents would have been entitled to receive, reduced by the accrued tracking fee; payable quarterly
|
| Price: | Variable
|
| Payout at maturity: | Par plus index return minus fee of about 0.85% per year
|
| Put option: | On weekly repurchase dates, subject to minimum of 50,000 notes
|
| Call option: | From April 7, 2011 onward
|
| Initial index level: | 487.42
|
| Pricing date: | March 31, 2010 (for $100 million); July 2 (for $100 million); Oct. 13 (for $200 million); Nov. 12
|
| Initial settlement date: | April 6, 2010
|
| Underwriter: | UBS Investment Bank
|
| Fees: | 1%
|
| Listing: | NYSE Arca: MLPI
|
| Cusip: | 902641646
|
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