Published on 8/31/2016 in the Prospect News Structured Products Daily.
New Issue: UBS sells $17.41 million trigger autocallable notes on MSCI EM, S&P 500
By Marisa Wong
Morgantown, W.Va., Aug. 31 – UBS AG, London Branch priced $17.41 million of trigger autocallable contingent yield notes due Sept. 3, 2026 linked to the lesser performing of the MSCI Emerging Markets index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 8.36% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter.
After one year, the notes will be automatically called at par of $10 if each index closes at or above its initial level on any quarterly observation date other than the final one.
The payout at maturity will be par unless either index finishes below its downside threshold level, 50% of its initial level, in which case investors will be fully exposed to the decline of the lesser-performing index.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | MSCI Emerging Markets and S&P 500
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| Amount: | $17,408,560
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| Maturity: | Sept. 3, 2026
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| Coupon: | 8.36%, payable quarterly if indexes close at or above coupon barrier levels on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par unless either index finishes below downside threshold level, in which case full exposure to decline of lesser-performing index
|
| Call: | After one year, automatically at par if indexes close at or above initial levels on any quarterly observation date other than final one
|
| Initial index levels: | 895.97 for EM, 2,180.38 for S&P
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| Coupon barriers: | 627.18 for EM, 1,526.27 for S&P; 70% of initial levels
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| Downside thresholds: | 447.99 for EM, 1,090.19 for S&P; 50% of initial levels
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| Pricing date: | Aug. 29
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| Settlement date: | Aug. 31
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 3.5%
|
| Cusip: | 90275Y260
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