Published on 3/11/2015 in the Prospect News Structured Products Daily.
New Issue: UBS prices $5 million contingent income autocallables on three indexes
By Marisa Wong
Madison, Wis., March 11 – UBS AG, London Branch priced $5 million of contingent income autocallable securities due March 12, 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.
The notes will pay a contingent quarterly coupon at an annual rate of 6.5% if each index closes at or above its 78.5% 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 93% call threshold level on any determination date other than the final date.
If each index finishes at or above its 78.5% downside threshold level, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will be fully exposed to any losses of the worst performing index.
UBS Securities LLC is the agent. Morgan Stanley Wealth Management will handle distribution.
| Issuer: | UBS AG, London Branch
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Euro Stoxx 50, Russell 2000 and Topix
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| Amount: | $5 million
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| Maturity: | March 12, 2020
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| Coupon: | 6.5%, payable quarterly if each index closes at or above coupon 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 final coupon, if applicable, unless any index finishes below downside threshold level, in which case exposure to decline of worst-performing index
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| Call: | At par plus contingent payment if each index closes at or above call threshold level on any quarterly determination date other than final date
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| Initial levels: | 3,610.28 for Euro Stoxx 50, 1,223.587 for Russell 2000 and 1,531.76 for Topix
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| Call threshold levels: | 3,357.56 for Euro Stoxx 50, 1,137.936 for Russell 2000 and 1,424.54 for Topix, 93% of initial levels
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| Coupon barrier levels: | 2,834.07 for Euro Stoxx 50, 960.516 for Russell 2000 and 1,202.43 for Topix, 78.5% of initial levels
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| Downside thresholds: | 2,834.07 for Euro Stoxx 50, 960.516 for Russell 2000 and 1,202.43 for Topix, 78.5% of initial levels
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| Pricing date: | March 9
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| Settlement date: | March 12
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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: | 90274P484
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