By Angela McDaniels
Tacoma, Wash., Sept. 15 - UBS AG, London Branch priced $10 million of 0% monthly 2x leveraged exchange-traded access securities due Sept. 13, 2041 linked to the ISE Solid State Drive index, according to a 424B2 filing with the Securities and Exchange Commission.
The company plans to sell up to $100 million of the notes. The initial $10 million of notes priced at par of $25. The remaining $90 million will be sold from time to time at varying prices.
The ISE Solid State Drive index is a total return index that provides a benchmark for investors interested in tracking companies actively involved in the solid state drive segment of the electronic storage industry.
The current principal amount of each note is $25 until Sept. 30. For each subsequent month, the current principal amount will equal the previous current principal amount plus the index factor on the applicable monthly valuation date minus the accrued tracking fee minus the accrued financing charges on that monthly valuation date.
The index factor is the twice the percentage change from the index's closing level on the monthly valuation date for the previous month to the index valuation level, which is the average of its closing levels on the last five trading days ending on the monthly valuation date for the current month.
The tracking fee is 0.65% per year multiplied by the sum of the current principal amount plus the index factor on the monthly valuation date.
The financing charge is an annualized rate equal to Libor plus 40 basis points multiplied by the current principal amount on the previous monthly valuation date.
The payout at maturity will be the current principal amount times the index factor on the last trading day in the final measurement period - the five-day period that begins Sept. 4, 2041 - minus the accrued fees as of the last trading day in the final measurement period.
The notes are putable subject to a minimum of 50,000 and a redemption fee of 0.125% of the current principal amount. They are callable in whole beginning Sept. 19, 2012. The company will automatically redeem the notes if their indicative value falls to $5 or less or decreases in value by at least 60% as compared to the previous business day.
The notes were approved for listing on NYSE Arca under the symbol "SSDL."
UBS Investment Bank is the agent.
| Issuer: | UBS AG, London Branch
|
| Issue: | Monthly 2x leveraged exchange-traded access securities
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| Underlying index: | ISE Solid State Drive index
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| Amount: | $10 million
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| Maturity: | Sept. 13, 2041
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| Coupon: | 0%
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| Face amount: | $25
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| Payout at maturity: | Current principal amount plus 200% of index's month-to-month return minus accrued tracking fee, which is 0.65% per year; current principal amount is $25 until Sept. 30; after that, current principal amount equals previous current principal amount plus index's month-to-month return minus accrued tracking fee minus accrued financing charges, which accrue at annual rate of Libor plus 40 bps
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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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| Call option: | From Sept. 19, 2012 onward
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| Acceleration: | Notes will be automatically redeemed if their indicative value falls to $5 or less or decreases in value at least 60% as compared to the previous business day
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| Initial index level: | 100.94
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| Pricing date: | Sept. 14
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| Settlement date: | Sept. 19
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| Agent: | UBS Investment Bank
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| Fees: | Varies
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| Listing: | NYSE Arca: SSDL
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| Cusip: | 90268A741
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