Published on 10/3/2013 in the Prospect News Structured Products Daily.
New Issue: UBS sells $15.38 million contingent income autocallables on two indexes
By Toni Weeks
San Luis Obispo, Calif., Oct. 3 - UBS AG, London Branch priced $15.38 million of contingent income autocallable securities due Oct. 4, 2018 linked to the worst performing of the Euro Stoxx 50 index, and the Russell 2000 index, according to a 424B2 with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7% if each index closes at or above its coupon barrier level, 65% of its initial index level, on a determination date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any of the first 19 determination dates.
If each index finishes at or above its 65% barrier level, the payout at maturity will be par plus the final contingent coupon.
Otherwise, investors will be fully exposed to the decline of the worst-performing index.
UBS Securities LLC is the agent with Morgan Stanley Smith Barney LLC handling distribution.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | Euro Stoxx 50, Russell 2000
|
| Amount: | $15,381,120
|
| Maturity: | Oct. 4, 2018
|
| Coupon: | 7% per year, payable quarterly if each index closes at or above its coupon barrier level on the determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If each index finishes at or above its downside threshold level, par plus the final contingent coupon; otherwise, full exposure to decline of worst-performing index
|
| Call: | At par plus the contingent coupon if each index closes at or above its initial level on any of the first 19 determination dates
|
| Initial index levels: | 2,893.15 for Euro Stoxx, 1,073.79 for Russell
|
| Coupon barrier levels: | 1,880.55 for Euro Stoxx, 697.96 for Russell; 65% of initial levels
|
| Pricing date: | Sept. 30
|
| Settlement date: | Oct. 3
|
| Agent: | UBS Securities LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 3%
|
| Cusip: | 90271M419
|
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