Published on 3/4/2015 in the Prospect News Structured Products Daily.
New Issue: UBS prices $10.28 million contingent income autocallables linked to three indexes
By Angela McDaniels
Tacoma, Wash., March 4 – UBS AG, London Branch priced $10.28 million of contingent income autocallable securities due March 3, 2020 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the Topix index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent payment at an annual rate of 8% if each index closes at or above its coupon barrier level, 70% of its initial share price, on the determination date for that quarter.
The notes will be redeemed at par of $10 plus the contingent coupon if each index closes at or above its call threshold level, 95% of its initial level, on any quarterly determination date other than the final date.
If the notes are not called and each index finishes at or above its downside threshold level, 65% of its initial 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 is handling distribution.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Euro Stoxx 50, Russell 2000 and Topix
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| Amount: | $10,282,000
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| Maturity: | March 3, 2020
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| Coupon: | 8%, payable quarterly if each index closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus final coupon, if applicable, unless any index finishes below downside threshold level, in which case exposure to decline of worst-performing index
|
| Call: | At par plus contingent payment if each index closes at or above call threshold level on any quarterly determination date other than the final date
|
| Initial levels: | 3,599.00 for Euro Stoxx 50, 1,233.368 for Russell 2000, 1,523.85 for Topix
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| Call thresholds: | 3,419.05 for Euro Stoxx 50, 1,171.700 for Russell 2000 and 1,447.66 for Topix, 95% of initial levels
|
| Coupon barrier levels: | 2,519.30 for Euro Stoxx 50, 863.358 for Russell 2000 and 1,066.70 for Topix, 70% of initial levels
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| Downside thresholds: | 2,339.35 for Euro Stoxx 50, 801.689 for Russell 200 and 990.50 for Topix, 65% of initial levels
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| Pricing date: | Feb. 27
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| Settlement date: | March 4
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| Agent: | UBS Securities LLC
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 3%
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| Cusip: | 90274P278
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