Published on 8/2/2013 in the Prospect News Structured Products Daily.
New Issue: UBS prices $10.09 million contingent income autocallables linked to indexes
By Susanna Moon
Chicago, Aug. 2 - UBS AG, London Branch priced $10.09 million of contingent income autocallable securities due Aug. 3, 2018 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 with the Securities and Exchange Commission.
If each index closes at or above its coupon barrier level, 75% of its initial index level, on a quarterly determination date, the notes will pay a contingent payment at an annualized rate of 8.5% 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 quarterly review date after one year.
If the final level of each index is greater than or equal to its downside threshold level, 55% of its initial level, the payout at maturity will be par plus the final contingent coupon.
Otherwise, investors will be fully exposed to any losses of the worst performing index.
UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | Euro Stoxx 50, Russell 2000, S&P 500
|
| Amount: | $10,091,770
|
| Maturity: | Aug. 3, 2018
|
| Coupon: | 8.5% 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 losses 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: | 2,768.15 for Euro Stoxx, 1,045.26 for Russell and 1,685.73 for S&P
|
| Coupon barrier levels: | 2,076.11 for Euro Stoxx, 783.95 for Russell and 1264.30 for S&P; 75% of initial levels
|
| Downside threshold: | 1,522.48 for Euro Stoxx, 574.89 for Russell and 927.15 for S&P; 55% of initial levels
|
| Call: | Par plus contingent payment if stock closes above initial share price on any quarterly determination date after one year
|
| Pricing date: | July 31
|
| Settlement date: | Aug. 5
|
| Agent: | UBS Securities LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 3%
|
| Cusip: | 90271L411
|
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