By Toni Weeks
San Luis Obispo, Calif., Oct. 21 - UBS AG, London Branch priced $350,000 of 0% contingent absolute return autocallable optimization securities due Oct. 28, 2014 linked to the Market Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus an annualized call premium of 16% if the fund's shares close at or above the initial share price on any monthly observation date.
If the notes are not called and the final share price is greater than or equal to the trigger price, 76.5% of the initial share price, the payout at maturity will be par plus the absolute value of the fund return. Otherwise, investors will be fully exposed to the decline in the share price.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
Issuer: | UBS AG, London Branch
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Issue: | Contingent absolute return autocallable optimization securities
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Underlying fund: | Market Vectors Gold Miners ETF
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Amount: | $350,000
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Maturity: | Oct. 28, 2014
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Coupon: | 0%
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Price: | Par of $10.00
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Payout at maturity: | If final share price is greater than or equal to trigger price, par plus absolute value of fund return; otherwise, full exposure to fund decline
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Call: | At par plus 16% per year if shares of the fund close at or above initial share price on any monthly observation date
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Initial share price: | $24.94
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Trigger price: | $19.08, 76.5% of initial share price
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Pricing date: | Oct. 21
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Settlement date: | Oct. 24
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Agents: | UBS Financial Services Inc. and UBS Investment Bank
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Fees: | 1.25%
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Cusip: | 90271F158
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