Published on 6/3/2015 in the Prospect News Structured Products Daily.
New Issue: UBS prices $462,484 call warrants linked to Euro Stoxx 50
By Angela McDaniels
Tacoma, Wash., June 3 – UBS AG, London Branch priced $462,484 of European-style, cash-settled call warrants expiring May 29, 2018 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The 3,656 warrants have a notional amount of $1,000 each, or $3,656,000 in total, and sold for $126.50 each, or 12.65% of the notional amount.
The warrants will be automatically exercised on the expiration date if the index's final level is greater than the initial index level. The cash settlement amount will be the greater of (a) the notional amount per warrant multiplied by the index return and (b) zero. The cash settlement payment date is June 1, 2018.
The index return must be greater than 12.65% for investors to receive a positive return on their initial investments.
If the index's final level is equal to or less than the initial index level, the warrants will expire worthless and investors will lose their entire initial investments in the warrants.
UBS Investment Bank is the underwriter with J.P. Morgan Securities LLC as agent.
| Issuer: | UBS AG, London Branch
|
| Issue: | Call warrants
|
| Underlying index: | Euro Stoxx 50 index
|
| Warrants: | 3,656
|
| Notional amount: | $1,000 each, or $3,656,000 total
|
| Price: | $126.50 each, or $462,484 total
|
| Expiration date: | May 29, 2018
|
| Cash settlement date: | June 1, 2018
|
| Payout: | If index's final level is greater than initial index level, warrants will be automatically exercised and investors will receive greater of (a) notional amount per warrant multiplied by index return and (b) zero; if index's final level is equal to or less than initial index level, warrants will expire worthless and investors will receive nothing
|
| Initial index level: | 3,570.78
|
| Pricing date: | May 29
|
| Settlement date: | June 3
|
| Underwriter: | UBS Investment Bank
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | $6.50 per warrant
|
| Cusip: | 90274T577
|
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