By Angela McDaniels
Tacoma, Wash., May 21 - UBS AG, London Branch increased the maximum principal amount of FI Enhanced Big Cap Growth exchange-traded notes it will price to $750 million from $200 million, according to a 424B3 filing with the Securities and Exchange Commission.
The company said it would sell a portion of the securities on May 20 at 100.84% of the closing intraday indicative value on that date. After May 20, it may sell a portion of the securities from time to time at varying prices.
As previously reported, the company sold $51.15 million principal amount of notes at par of $25.00 on the initial trade date, June 8, 2012. It increased the maximum size to $200 million from $100 million on Sept. 28, 2012.
The notes are due June 13, 2022 and provide two times leveraged exposure to the performance of the Russell 1000 Growth Index Total Return. The return will be reduced by the index adjustment factor, which is Libor plus 13 basis points per year.
The notes are putable subject to a minimum of 50,000 notes, and the issuer may call the notes in whole on or after June 8, 2014. The notes will be accelerated if the index declines to 70% of the initial index level at any time on any day or if the intraday indicative value of the notes is $5.00 or less.
In the case of redemption, there will also be an early redemption fee of $0.0125 per note.
In addition, if the index declines to 80% of the initial level, the calculation agent will make adjustments to the cash settlement amount formula, the early redemption level and other relevant terms of the notes and charge a fee of $0.0125 per note. The aim of the rebalancing is to reset the then-current leverage to about 2 times based on the closing index level as of the date of the rebalance event.
The notes are listed on the NYSE Arca under the symbol "FBG."
UBS Investment Bank is the agent.
| Issuer: | UBS AG, London Branch
|
| Issue: | FI Enhanced Big Cap Growth exchange-traded notes
|
| Underlying index: | Russell 1000 Growth Index Total Return
|
| Amount: | Up to $750 million
|
| Maturity: | June 13, 2022
|
| Coupon: | 0%
|
| Price: | Par of $25 for $51,153,750
|
| Payout at maturity: | Par plus double the index performance, less the index adjustment factor
|
| Put option: | At any time subject to minimum of 50,000 notes
|
| Call option: | From June 8, 2014 onward
|
| Acceleration: | Automatically if index falls to 70% of initial level or intraday indicative value of notes is $5.00 or less
|
| Initial index level: | 549.5672
|
| Pricing date: | June 8, 2012 for $51,153,750
|
| Settlement date: | June 13, 2012 $51,153,750
|
| Agent: | UBS Investment Bank
|
| Symbol: | NYSE Arca: FBG
|
| Cusip: | 90267L508
|
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