Published on 2/4/2015 in the Prospect News Structured Products Daily.
New Issue: UBS prices $10.79 million contingent income autocallables linked to three indexes
By Marisa Wong
Madison, Wis., Feb. 4 – UBS AG, London Branch priced $10.79 million of contingent income autocallable securities due Feb. 4, 2020 linked to the worst performing of the Dow Jones industrial average index, the Russell 2000 index and the S&P 500 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 7.6% if each index closes at or above its 74% coupon barrier level on the determination date for that quarter.
The notes will be redeemed at par plus the contingent coupon if each index closes at or above its initial level on any determination date other than the final date.
If the notes are not called and each index finishes at or above its 60% downside threshold level, the payout at maturity will be par plus the contingent coupon, if any.
Otherwise, investors will be fully exposed to the decline of the worst-performing index.
UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC will handle distribution.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Dow Jones industrial average index, the Russell 2000 index and the S&P 500 index
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| Amount: | $10,792,000
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| Maturity: | Feb. 4, 2020
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| Coupon: | 7.6% annualized for each quarter that each index closes at or above its coupon barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus final coupon unless any index finishes below its downside threshold level, in which case exposure to any losses of the worst performing index
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| Call: | At par plus contingent payment if each index closes at or above initial level on any determination date other than the final date
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| Initial levels: | 17,164.95 for Dow, 1,165.392 for Russell and 1,994.99 for S&P
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| Coupon barriers: | 12,702.06 for Dow, 862.390 for Russell, 1,476.29 for S&P; 74% of initial levels
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| Downside thresholds: | 10,298.97 for Dow, 699.235 for Russell, 1,196.99 for S&P, 60% of initial levels
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| Pricing date: | Jan. 30
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| Settlement date: | Feb. 4
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| Agent: | UBS Securities LLC with Morgan Stanley Wealth Management handling distribution
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| Fees: | 3%
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| Cusip: | 90274F783
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