Published on 10/3/2014 in the Prospect News Structured Products Daily.
New Issue: UBS prices $5.7 million contingent income autocallables tied to indexes
By Marisa Wong
Madison, Wis., Oct. 3 – UBS AG, London Branch priced $5.7 million of contingent income autocallable securities due Sept. 30, 2021 linked to the worst performing of the Euro Stoxx 50 index, the MSCI Emerging Markets index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 11% per year if each index closes at or above its barrier level, 75% of its initial level, on the determination date for that quarter.
The notes will be automatically redeemed at par plus the contingent coupon if each index closes at or above its initial level on any quarterly redemption determination date other than the final one.
If the notes are not called and each index finishes at or above its downside threshold level, 55% of its initial level, the payout at maturity will be par plus the contingent coupon, if any.
If the notes are not called and any index finishes below its downside threshold level, investors will be fully exposed to the decline of the worst-performing index from its initial level.
UBS Securities LLC is the agent. Distribution is through Morgan Stanley Smith Barney LLC.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Euro Stoxx 50, MSCI Emerging Markets, Russell 2000
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| Amount: | $5,695,850
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| Maturity: | Sept. 30, 2021
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| Coupon: | Each quarter, notes pay contingent coupon at rate of 11% per year if each index closes at or above barrier level on 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 downside threhold level, par plus final contingent coupon, if any; if any index finishes below downside threshold level, full exposure to decline of worst-performing index from initial level
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| Call: | Automatically at par plus contingent coupon if each index closes at or above initial level on any quarterly redemption determination date other than the final one
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| Initial index levels: | 150.06 for Euro Stoxx, 1,023.91 for MSCI EM, 1,119.331 for Russell
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| Barrier levels: | 112.55 for Euro Stoxx, 767.93 for MSCI EM, 839.498 for Russell; 75% of initial levels
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| Downside thresholds: | 82.53 for Euro Stoxx, 563.15 for MSCI EM, 615.632 for Russell; 55% of initial levels
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| Pricing date: | Sept. 26
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| Settlement date: | Oct. 1
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| Agent: | UBS Securities LLC
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| Distribution: | Morgan Stanley Smith Barney LLC
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| Fees: | 3.5%
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| Cusip: | 90273L773
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