By Toni Weeks
San Luis Obispo, Calif., Jan. 21 – UBS AG, London Branch priced $2.16 million of trigger phoenix autocallable optimization securities due Jan. 23, 2025 linked to the least performing of the MSCI EAFE 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 7.75% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly observation date beginning after one year.
If the notes are not called and each index finishes at or above its 70% coupon barrier level, the payout at maturity will be par plus the contingent coupon.
If either index finishes below the 70% barrier but each index finishes at or above the trigger level, 50% of the initial level, the payout will be par.
Otherwise, investors will be fully exposed to any losses of the worst-performing index.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying indexes: | MSCI EAFE and Russell 2000
|
| Amount: | $6,324,190
|
| Maturity: | Jan. 23, 2025
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| Coupon: | 7.75% annualized for each quarter that each index closes at or above coupon barrier level on quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above coupon barrier, par plus coupon; if either index finishes below coupon barrier but both indexes finish at or above trigger level, par; otherwise, full exposure to losses of worst-performing index
|
| Call: | At par if each index closes at or above initial level on any quarterly observation date beginning Jan. 19, 2016
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| Initial levels: | 1,741.9 for MSCI EAFE and 1,176.655 for Russell
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| Coupon barriers: | 1,219.33 for MSCI EAFE and 823.659 for Russell, 70% of initial levels
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| Trigger levels: | 870.95 for MSCI EAFE and 588.328 for Russell, 50% of initial levels
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| Pricing date: | Jan. 16
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| Settlement date: | Jan. 22
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 3.5%
|
| Cusip: | 90274F528
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