Published on 2/24/2015 in the Prospect News Structured Products Daily.
New Issue: UBS prices $3.45 million contingent absolute return autocallables linked to Apache
By Marisa Wong
Madison, Wis., Feb. 24 – UBS AG, London Branch priced $3.45 million of 0% contingent absolute return autocallable optimization securities due Feb. 29, 2016 linked to Apache Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus an annualized call premium of 11% if Apache shares close at or above the initial price on any quarterly observation date.
If the notes are not called and the final share price is greater than or equal to the trigger price, 75% of the initial price, the payout at maturity will be par plus the absolute value of the stock return. Otherwise, investors will be fully exposed to the stock decline.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
Issuer: | UBS AG, London Branch
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Issue: | Contingent absolute return autocallable optimization securities
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Underlying stock: | Apache Corp. (Symbol: APA)
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Amount: | $3,453,500
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Maturity: | Feb. 29, 2016
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Coupon: | 0%
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Price: | Par of $10.00
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Payout at maturity: | If final share price is greater than or equal to trigger price, par plus absolute value of stock return; otherwise, full exposure to share price decline
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Call: | Automatically at par plus 11% per year if Apache shares close at or above initial share price on any observation date, which occurs every quarter
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Initial share price: | $66.22
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Trigger price: | $49.67, 75% of initial price
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Pricing date: | Feb. 20
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Settlement date: | Feb. 25
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Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
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Fees: | 1.5%
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Cusip: | 90274P229
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