By Angela McDaniels
Tacoma, Wash., Dec. 10 - UBS AG, London Branch priced $45.2 million of 0% callable exchangeable securities due Dec. 15, 2020 linked to the common stock of Ensco plc, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be an amount of cash equal to the greater of par and the average of the conversion values on Dec. 4, 2020, Dec. 7, 2020 and Dec. 8, 2020.
The conversion value is equal to the share exchange amount multiplied by the closing share price on that day.
The share exchange amount is 13.98333, which is $1,000 divided by the initial share price divided by the conversion premium of 1.2. The share exchange amount may be adjusted in the case of certain corporate events and will be adjusted in the case of regular quarterly cash dividends that exceed or fall short of $0.75.
The notes are exchangeable at each holder's option at any time for an amount in cash equal to the conversion value.
The notes are callable beginning Dec. 20, 2018. The payout would be the greater of par and the conversion value.
The notes are putable at par if a fundamental change occurs where the value of the distribution property related to that fundamental change consists of 10% or more of cash.
UBS Securities LLC is the underwriter.
| Issuer: | UBS AG, London Branch
|
| Issue: | Callable exchangeable securities
|
| Underlying stock: | Ensco plc (NYSE: ESV)
|
| Amount: | $45.2 million
|
| Maturity: | Dec. 15, 2020
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Amount of cash equal to greater of par and average of conversion values on Dec. 4, 2020, Dec. 7, 2020 and Dec. 8, 2020
|
| Conversion value: | 13.98333 multiplied by closing share price
|
| Exchange option: | At any time for amount in cash equal to conversion value
|
| Call option: | Beginning Dec. 20, 2018 at greater of par and conversion value
|
| Put option: | At par upon occurrence of certain fundamental change
|
| Initial share price: | $59.595
|
| Pricing date: | Dec. 9
|
| Settlement date: | Dec. 16
|
| Underwriter: | UBS Securities LLC
|
| Fees: | None
|
| Cusip: | 90270KARO
|
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