By Angela McDaniels
Tacoma, Wash., Aug. 22 - UBS AG, London Branch increased the maximum amount of ETracs exchange-traded notes due July 18, 2042 linked to the Alerian MLP index that it can price to $200 million from $100 million, according to a 424B3 filing with the Securities and Exchange Commission.
The company priced $10 million of the notes at par of $25 on July 17, 2012. The remaining notes will be sold from time to time for a price of up to 101.5% of their current issuance amount.
"Issuance amount" means a value equal to (i) par multiplied by the index performance ratio less (ii) the accrued tracking fee plus (iii) the coupon amount plus (iv) the adjusted coupon amount, if any.
The notes pay a quarterly coupon equal to the sum of the cash distributions that a hypothetical holder of the index constituents would have received during the quarter minus an accrued tracking fee of 0.8% per year. UBS Securities LLC or UBS Financial Services Inc. may receive up to 88.235% of the quarterly tracking fee for services in connection with those future distributions.
The payout at maturity will be par multiplied by the index performance ratio minus the accrued tracking fee. The index performance ratio is the final VWAP level divided by the initial VWAP level.
The VWAP level on any day is the average of the volume-weighted average prices of the units of the index constituents on that day.
The notes are putable, subject to a minimum of 50,000 and a redemption fee of 0.125%. They became callable in whole on July 22, 2013.
The index measures the performance of 50 energy master limited partnerships. The index constituents are engaged in the transportation, storage, processing or production of energy commodities.
The notes are listed on NYSE Arca under the symbol "AMU."
UBS Investment Bank is the agent.
| Issuer: | UBS AG, London Branch
|
| Issue: | ETracs Alerian MLP index exchange-traded notes
|
| Underlying index: | Alerian MLP index
|
| Amount: | Up to $200 million
|
| Maturity: | July 18, 2042
|
| Coupon: | Amount equal to cash distributions made by index constituents during quarter minus tracking fee of 0.8% per year; payable quarterly
|
| Face amount: | $25
|
| Payout at maturity: | Par multiplied by index performance ratio minus accrued tracking fee
|
| Call option: | From July 22, 2013 onward
|
| Put option: | At any time, subject to minimum of 50,000 notes and 0.125% redemption fee
|
| Initial index level: | 396.997
|
| Pricing date: | July 17, 2012
|
| Settlement date: | July 20, 2012 (for $10 million)
|
| Upsized: | Aug. 22
|
| Agent: | UBS Investment Bank
|
| Fees: | Up to 1.5%
|
| Listing: | NYSE Arca: AMU
|
| Cusip: | 90267B682
|
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