Published on 2/28/2014 in the Prospect News Structured Products Daily.
New Issue: UBS prices $6.87 million trigger autocallable optimization notes tied to index basket
By Toni Weeks
San Luis Obispo, Calif., Feb. 28 - UBS AG, London Branch priced $6.87 million of 0% trigger autocallable optimization securities due Feb. 29, 2016 linked to a basket of unequally weighted indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket indexes are the Euro Stoxx 50 index with a 40% weight, the MSCI Emerging Markets index with a 30% weight and the Russell 2000 index with a 30% weight.
Beginning May 28, 2014, the notes will be called at par of $10 plus a call return of 8% per year if the basket closes at or above the initial level on any quarterly observation date.
If the notes are not called and the basket finishes at or above the trigger level, 80% of the initial basket level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final basket level is less than the initial level.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable optimization securities
|
| Underlying components: | Euro Stoxx 50 (40% weight), MSCI Emerging Markets (30% weight), Russell 2000 (30% weight)
|
| Amount: | $6,870,140
|
| Maturity: | Feb. 29, 2016
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par if basket finishes at or above trigger level; otherwise, full exposure to basket's decline
|
| Call: | Automatically at par plus 8% per year if basket closes at or above initial level on any quarterly observation date beginning May 28, 2014
|
| Initial index levels: | 3,148.19 for Euro Stoxx, 956.26 for MSCI EM, 1,181.72 for Russell
|
| Initial basket level: | 100
|
| Trigger level: | 80% of initial basket level
|
| Pricing date: | Feb. 26
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| Settlement date: | Feb. 28
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
|
| Cusip: | 90272V129
|
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