Published on 9/15/2015 in the Prospect News Structured Products Daily.
New Issue: UBS prices S$4.1 million put warrants linked to Hang Sang
By Angela McDaniels
Tacoma, Wash., Sept. 15 – UBS AG, London Branch priced 15 million European-style index put warrants expiring March 30, 2016 linked to the Hang Seng index, according to a term sheet.
The issue price is S$0.273 per warrant, or S$4.1 million in total.
If the final index level is less than 20,000 and the cash settlement amount is positive, the warrants will be automatically exercised on the expiration date, and investors will receive the quotient of (a) (i) HK$1 times (ii) 20,000 minus the final index level (iii) times the conversion ratio divided by (b) the rate of exchange on the expiration date between the Hong Kong dollar and the Singapore dollar. The conversion ratio is 0.001, i.e., 1,000 warrants per index unit.
If the final index level is greater than or equal to 20,000, the warrants will not be exercised.
The gearing is five times, and the premium is 13.9%.
Issuer: | UBS AG, London Branch
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Issue: | European-style index put warrants
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Underlying index: | Hang Seng
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Amount: | S$4,095,000
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Expiration date: | March 30, 2016
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Price: | S$0.273
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Warrants: | 15 million
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Payout: | If final index level is less than 20,000 and cash settlement amount is positive, quotient of (a) (i) HK$1 times (ii) 20,000 minus final index level (iii) times 0.001 divided by (b) rate of exchange on expiration date between Hong Kong dollar and Singapore dollar; if final index level is greater than or equal to 20,000, nothing
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Initial index level: | 21,482.22
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Pricing date: | Sept. 15
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Settlement date: | Sept. 22
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