Published on 12/2/2013 in the Prospect News Structured Products Daily.
New Issue: UBS prices $17.64 million trigger phoenix autocallables linked to indexes
By Angela McDaniels
Tacoma, Wash., Dec. 2 - UBS AG, London Branch priced $17.64 million of 0% trigger phoenix autocallable optimization securities due Nov. 30, 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 its initial level, on a quarterly observation date, the issuer will pay an annualized contingent coupon of 8% for that quarter. Otherwise, no coupon will be paid for that quarter.
If each index closes at or above its initial level on any quarterly observation date, the notes will be called at par of $10 plus the contingent coupon. The first observation date is Nov. 26, 2014.
If the notes are not called and each index finishes at or above its trigger level, 50% of its initial level, the payout at maturity will be par plus the contingent coupon, if any. If either index finishes below its trigger level, investors will lose 1% for every 1% that the least-performing index declines below its initial level.
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: | $17,635,410
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| Maturity: | Nov. 30, 2023
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| Coupon: | 8%, payable quarterly if each index closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon, if any, if each index finishes at or above trigger level; otherwise, 1-to-1 exposure to decline 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 beginning Nov. 26, 2014
|
| Initial index levels: | 3,062.62 for Euro Stoxx 50 and 1,134.53 for Russell 2000
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| Trigger levels: | 1,531.31 for Euro Stoxx 50 and 567.27 for Russell 2000, or 50% of initial levels
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| Coupon barriers: | 2,143.83 for Euro Stoxx 50 and 794.17 for Russell 2000, or 70% of initial levels
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| Pricing date: | Nov. 26
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| Settlement date: | Nov. 29
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 2.54%
|
| Cusip: | 90271R533 |
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