Published on 6/13/2017 in the Prospect News Structured Products Daily.
New Issue: UBS sells $17.37 million of trigger callable contingent yield notes on indexes
By Devika Patel
Knoxville, Tenn., June 13 – UBS AG, London Branch priced $17.37 million of trigger callable contingent yield notes due Dec. 16, 2021 linked to the worst performing of the MSCI EAFE index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 8.5% if each index’s closing level is at least 70% of its initial level on the observation date for that quarter.
The notes will be callable in whole but not in part on any quarterly observation date other than the final one at par of $10 plus any coupon beginning Sept. 11, 2017.
If the notes are not called and each index closes at or above its 60% trigger level on Dec. 9, 2021, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | MSCI EAFE, Russell 2000 and S&P 500
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| Amount: | $17,371,000
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| Maturity: | Dec. 16, 2021
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| Coupon: | 8.5% per year, payable quarterly if each index closes at or above its barrier level on observation date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par unless any index closes below trigger level on Dec. 9, 2021, in which case full exposure to any losses of worst performing index
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| Call option: | At par plus any coupon on any quarterly observation other than final date beginning Sept. 11, 2017
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| Initial levels: | 1,892.97 for MSCI EAFE, 1,421.707 for Russell, 2,431.77 for S&P
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| Coupon barrier levels: | 1,325.08 for MSCI EAFE, 995.195 for Russell, 1,702.24 for S&P; 70% of initial levels
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| Trigger levels: | 1,135.78 for MSCI EAFE, 853.024 for Russell, 1,459.06 for S&P; 60% of initial levels
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| Pricing date: | June 9
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| Settlement date: | June 16
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| Agent: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2%
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| Cusip: | 90280V616
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