By Angela McDaniels
Tacoma, Wash., Oct. 4 - UBS AG, London Branch priced $5 million of trigger phoenix autocallable optimization securities due Oct. 8, 2015 linked to the iShares Russell 2000 index fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the exchange-traded fund's shares close at or above the trigger price, 70% of the initial share price, on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 5.15% per year. Otherwise, no coupon will be paid that quarter.
Beginning one year after issuance, the notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial price on a quarterly observation date.
If the notes are not called and the shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying ETF: | iShares Russell 2000
|
| Amount: | $5 million
|
| Maturity: | Oct. 8, 2015
|
| Coupon: | 5.15% per year, payable quarterly if ETF closes at or above trigger price on observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if ETF's shares finish at or above trigger price; otherwise, par plus ETF return
|
| Call: | Automatically at par plus contingent coupon if shares close at or above initial price on a quarterly observation date beginning Oct. 2, 2014
|
| Initial share price: | $107.41
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| Trigger price: | $75.19, 70% of initial share price
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| Pricing date: | Oct. 2
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| Settlement date: | Oct. 7
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
|
| Cusip: | 90271M617
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