Published on 10/23/2014 in the Prospect News Structured Products Daily.
New Issue: UBS prices $1 million trigger phoenix callable notes on three indexes
By Marisa Wong
Madison, Wis., Oct. 23 – UBS AG, London Branch priced $1 million of trigger phoenix callable optimization securities due Oct. 28, 2024 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 barrier level, 70% of its initial level, on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 8.75% per year. Otherwise, no coupon will be paid that quarter.
After three years, 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, 50% of the initial 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
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| 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: | $1 million
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| Maturity: | Oct. 28, 2024
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| Coupon: | 8.75% per year payable quarterly if each index closes at or above barrier level on observation date for that quarter
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| 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 after three years
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| Initial index levels: | 2,991.46 for Euro Stoxx 50, 1,112.847 for Russell 2000 and 1,941.28 for S&P 500
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| Coupon barrier levels: | 2,094.02 for Euro Stoxx 50, 778.993 for Russell 2000 and 1,358.90 for S&P 500; 70% of initial levels
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| Trigger levels: | 1,495.73 for Euro Stoxx 50, 556.424 for Russell 2000 and 970.64 for S&P 500; 50% of initial levels
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| Pricing date: | Oct. 21
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| Settlement date: | Oct. 28
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 1.5%
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| Cusip: | 90274B543
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