Published on 1/26/2011 in the Prospect News Structured Products Daily.
New Issue: UBS prices $500,000 18.3% reverse convertibles linked to AK Steel
By Angela McDaniels
Tacoma, Wash., Jan. 26 - UBS AG, London Branch priced $500,000 of reverse convertible notes due May 4, 2011 linked to the common stock of AK Steel Holding Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes pay 4.68% for an annualized coupon of 18.3%. Interest is payable monthly.
The payout at maturity will be par unless AK Steel stock falls by more than 20% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of AK Steel shares equal to $1,000 divided by the initial share price.
UBS Securities LLC and UBS Investment Bank are the underwriters.
Issuer: | UBS AG, London Branch
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Issue: | Reverse convertible notes
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Underlying stock: | AK Steel Holding Corp. (NYSE: AKS)
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Amount: | $500,000
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Maturity: | May 4, 2011
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Coupon: | 18.3%, payable monthly
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Price: | Par
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Payout at maturity: | If AK Steel stock falls below trigger price during life of notes and finishes below initial share price, 61.0501 Las Vegas Sand shares; otherwise, par
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Initial share price: | $16.38
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Trigger price: | $13.10, 80% of initial price
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Pricing date: | Jan. 26
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Settlement date: | Feb. 2
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Underwriters: | UBS Securities LLC and UBS Investment Bank
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Fees: | 1.25%
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Cusip: | 902674DY3
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