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Published on 8/25/2016 in the Prospect News Structured Products Daily.

New Issue: UBS sells $7.15 million capped leveraged buffered notes on index basket

By Marisa Wong

Morgantown, W.Va., Aug. 25 – UBS AG, London Branch priced $7.15 million of 0% capped leveraged buffered notes due May 29, 2018 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the Euro Stoxx 50 index with a 37% weight, the FTSE 100 index with a 23% weight, the Topix index with a 23% weight, the Swiss Market index with a 9% weight and the S&P/ASX 200 index with an 8% weight.

The payout at maturity will be par plus 1.5 times any basket gain, up to maximum settlement amount of $1,270 for each $1,000 principal amount.

Investors will receive par if the basket falls by up to 12.5% and will lose 1.1429% for every 1% decline beyond 12.5%.

UBS Securities LLC is the agent.

Issuer:UBS AG, London Branch
Issue:Capped leveraged buffered notes
Underlying indexes:Euro Stoxx 50 index with a 37% weight, the FTSE 100 index with a 23% weight, the Topix index with a 23% weight, the Swiss Market index with a 9% weight and the S&P/ASX 200 index with an 8% weight
Amount:$7,149,000
Maturity:May 29, 2018
Coupon:0%
Price:Par
Payout at maturity:Par plus 1.5 times any basket gain, capped at 27%; par if the basket falls by up to 12.5%; 1.1429% loss for every 1% decline beyond 12.5%
Initial levels:2,993.73 for Euro Stoxx, 6,868.51 for FTSE, 1,297.56 for Topix, 8,201.61 for Swiss Market, 5,553.773 for S&P/ASX
Pricing date:Aug. 23
Settlement date:Aug. 30
Agent:UBS Securities LLC
Fees:None
Cusip:90270KGY9

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