Published on 8/13/2013 in the Prospect News Structured Products Daily.
New Issue: UBS prices $3.85 million trigger phoenix autocallables on Russell 2000, Euro Stoxx 50
By Jennifer Chiou
New York, Aug. 13 - UBS AG, London Branch priced $3,853,820 of trigger phoenix autocallable optimization securities due Aug. 15, 2023 linked to the least performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index finishes 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 8.05%. Otherwise, no coupon will be paid for that quarter.
If each index closes at or above its initial level on any quarterly 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 finishes below the trigger level, investors will be exposed to the decline in the least-performing index.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying indexes: | Russell 2000 and Euro Stoxx 50
|
| Amount: | $3,853,820
|
| Maturity: | Aug. 15, 2023
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| Coupon: | 8.05% per year, 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 each index finishes at or above trigger level; otherwise, full exposure to decline of least -performing index
|
| Call: | Beginning on Aug. 11, 2014, notes will be called automatically at par plus contingent coupon if both indexes close at or above initial levels on a quarterly observation date
|
| Initial index levels: | 1,048.40 for Russell 2000 and 2,825.62 for Euro Stoxx 50
|
| Coupon barrier levels: | 733.88 for Russell 2000 and 1,977.93 for Euro Stoxx 50; 70% of initial levels
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| Trigger levels: | 524.20 for Russell 2000 and 1,412.81 for Euro Stoxx 50; 50% of initial levels
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| Pricing date: | Aug. 9
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| Settlement date: | Aug. 14
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 3.5%
|
| Cusip: | 90271L585
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