Published on 10/3/2016 in the Prospect News Structured Products Daily.
New Issue: UBS sells $12.12 million trigger autocallable contingent yield notes tied to two indexes
By Susanna Moon
Chicago, Oct. 3 – UBS AG, London Branch priced $12.12 million of trigger autocallable contingent yield notes due Oct. 1, 2026 linked to the MSCI EAFE index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7.96% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date after one year.
The payout at maturity will be par unless either index finishes below the 50% downside threshold level, in which case investors will be fully exposed to any losses of the worse performing index.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | MSCI EAFE and the Russell 2000
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| Amount: | $12,120,690
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| Maturity: | Oct. 1, 2026
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| Coupon: | 7.96% per year, payable each quarter that each index closes at or above coupon barrier on observation date for that quarter
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| Price: | Par of $10
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| Call: | At par plus contingent coupon if each index closes at or above initial level on any quarterly observation date after one year
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| Payout at maturity: | Par unless either index closes below 50% downside threshold, in which case full exposure to losses of worse performing index
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| Initial levels: | 1,698.90 for MSCI EAFE, 1,255.666 for Russell
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| Coupon barriers: | 1,189.23 for MSCI EAFE, 878.966 for Russell; 70% of initial levels
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| Downside thresholds: | 849.45 for MSCI EAFE, 627.833 for Russell; 50% of initial levels
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| Pricing date: | Sept. 28
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| Settlement date: | Sept. 30
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 3.5%
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| Cusip: | 90275Y443
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