Published on 11/19/2013 in the Prospect News Structured Products Daily.
New Issue: UBS prices $1.54 million trigger phoenix autocallables on Euro Stoxx, Russell 2000
By Marisa Wong
Madison, Wis., Nov. 19 - UBS AG, London Branch priced $1.54 million of 0% trigger phoenix autocallable optimization securities due Nov. 21, 2023 linked to the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index closes at or above its coupon barrier - 70% of the initial level - on any quarterly observation date, the issuer will pay an annualized contingent coupon of 7.7%. Otherwise, no coupon will be paid for that quarter.
If each index closes at or above its initial level on any observation date after one year, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and each index finishes at or above the trigger level, 50% of the initial level, the payout at maturity will be par plus the contingent coupon, if any. If either index dips below its trigger level, investors will be fully exposed to the decline in the least-performing index.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying indexes: | Euro Stoxx 50, Russell 2000
|
| Amount: | $1,539,000
|
| Maturity: | Nov. 21, 2023
|
| Coupon: | 7.7%, payable quarterly if each index closes at or above trigger level on observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon, if any, if each index closes at or above trigger level; otherwise, par plus return of least-performing index
|
| Call: | Automatically at par plus contingent coupon if each index closes at or above initial level on any quarterly observation date after one year
|
| Initial levels: | 3,054.53 for Euro Stoxx, 1,116.20 for Russell
|
| Trigger levels: | 1,527.27 for Euro Stoxx, 558.10 for Russell, 50% of initial levels
|
| Coupon barriers: | 2,138.17 for Euro Stoxx, 781.34 for Rusell, 70% of initial levels
|
| Pricing date: | Nov. 15
|
| Settlement date: | Nov. 20
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 3.5%
|
| Cusip: | 90271R392
|
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