Published on 10/3/2014 in the Prospect News Structured Products Daily.
New Issue: UBS prices $2.55 million contingent income autocallables linked to indexes
By Angela McDaniels
Tacoma, Wash., Oct. 3 – UBS AG, London Branch priced $2.55 million of contingent income autocallable securities due Oct. 3, 2019 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the Topix index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 8% per year if each index closes at or above its barrier level, 75% of its initial level, on the determination date for that quarter.
The notes will be automatically redeemed at par plus the contingent coupon if each index closes at or above its call threshold level, 95% of its initial level, on any quarterly redemption determination date other than the final one.
If the notes are not called and each index finishes at or above its barrier level, the payout at maturity will be par plus the contingent coupon.
If the notes are not called and any index finishes below its barrier level, investors will be fully exposed to the decline of the worst-performing index from its initial level.
UBS Securities LLC is the agent. Distribution is through Morgan Stanley Smith Barney LLC.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Euro Stoxx 50, Russell 2000 and Topix
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| Amount: | $2.55 million
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| Maturity: | Oct. 3, 2019
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| Coupon: | Each quarter, notes pay contingent coupon at rate of 8% per year if each index closes at or above barrier level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If each index finishes at or above barrier level, par plus final contingent coupon; if any index finishes below barrier level, full exposure to decline of worst-performing index from initial level
|
| Call: | Automatically at par plus contingent coupon if each index closes at or above call threshold level on any quarterly redemption determination date other than the final one
|
| Initial index levels: | 3,225.93 for Euro Stoxx 50, 1,101.676 for Russell 2000 and 1,326.29 for Topix
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| Call thresholds: | 3,064.63 for Euro Stoxx 50, 1,046.592 for Russell 2000 and 1,259.98 for Topix; 95% of initial levels
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| Barrier levels: | 2,419.45 for Euro Stoxx 50, 826.257 for Russell 2000 and 994.72 for Topix; 75% of initial levels
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| Pricing date: | Sept. 30
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| Settlement date: | Oct. 3
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| Agent: | UBS Securities LLC
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| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 3%
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| Cusip: | 90274B105
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