Published on 8/29/2013 in the Prospect News Structured Products Daily.
New Issue: UBS prices $3 million trigger phoenix callable notes linked to three indexes
By Angela McDaniels
Tacoma, Wash., Aug. 29 - UBS AG, London Branch priced $3 million of trigger phoenix callable optimization securities due Aug. 31, 2023 linked to the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index closes at or above its trigger level, 60% of its initial level, on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 9.65% per year. Otherwise, no coupon will be paid that quarter.
Beginning Aug. 28, 2014, the notes are callable on any quarterly observation date at par of $10 plus the contingent coupon, if any.
If the notes are not called, the payout will be par plus the contingent coupon unless any index finishes below its trigger level, in which case investors will be exposed to the decline of the worst-performing index from its initial level.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix callable optimization securities
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| Underlying indexes: | Euro Stoxx 50, Russell 2000, S&P 500
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| Amount: | $3 million
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| Maturity: | Aug. 31, 2023
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| Coupon: | 9.65% per year payable quarterly if each index closes at or above trigger level on observation date for that quarter
|
| Price: | Par of $10.00
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| Payout at maturity: | Par plus contingent coupon if each index finishes at or above trigger level; otherwise, full exposure to decline of worst-performing index
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| Call option: | At par plus contingent coupon, if any, on any quarterly observation date from Aug. 28, 2014 onward
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| Initial index levels: | 2,749.27 for Euro Stoxx 50, 1,013.49 for Russell 2000 and 1,630.48 for S&P 500
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| Trigger levels: | 1,649.56 for Euro Stoxx 50, 608.09 for Russell 2000 and 978.29for S&P 500; 60% of initial levels
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| Pricing date: | Aug. 27
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| Settlement date: | Aug. 30
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 1.65%
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| Cusip: | 90271M138
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