Published on 8/20/2014 in the Prospect News Structured Products Daily.
New Issue: UBS prices $7.19 million contingent income autocallables linked to three indexes
By Susanna Moon
Chicago, Aug. 20 – UBS AG, London Branch priced $7.19 million of contingent income autocallable securities due Aug. 20, 2019 linked to the worst performing of the Euro Stoxx Banks index, the MSCI Emerging Markets index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.25% if each index closes at or above its 75% coupon barrier level on a determination date for that quarter.
The notes will be redeemed at par plus the contingent coupon if each index closes at or above its respective initial level on any of the first 19 determination dates.
If the notes are not called, the payout at maturity will be par plus the final contingent coupon unless any index finishes below its 50% trigger level, in which case investors will be fully exposed to any losses of the worst performing index.
UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC will handle distribution.
| Issuer: | UBS AG, London Branch
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Euro Stoxx Banks index, MSCI Emerging Markets index and Russell 2000 index
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| Amount: | $7,914,010
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| Maturity: | Aug. 20, 2019
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| Coupon: | 10.25% per year, payable quarterly if each index closes at or above its coupon barrier level on the determination date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above its trigger 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
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| Initial index levels: | 137.17 for Euro Stoxx Banks, 1,074.51 for MSCI EM and 1,141.648 for Russell
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| Coupon barriers: | 102.88 for Euro Stoxx Banks, 805.88 for MSCI EM and 856.236 for Russell; 75% of initial levels
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| Trigger level: | 68.59 for Euro Stoxx Banks, 537.26 for MSCI EM and 570.824 for Russell; 50% of initial levels
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| Pricing date: | Aug. 15
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| Settlement date: | Aug. 20
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| Agent: | UBS Securities LLC with Morgan Stanley Smith Barney LLC as dealer
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| Fees: | 3%
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| Cusip: | 90273L161
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