Published on 4/6/2015 in the Prospect News Structured Products Daily.
New Issue: UBS prices $1.33 million trigger phoenix autocallables on two indexes
By Marisa Wong
Madison, Wis., April 6 – UBS AG, London Branch priced $1.33 million of trigger phoenix autocallable optimization securities due March 31, 2025 linked to the worst performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 6.6% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date after one year.
If the notes are not called and each index finishes at or above its 50% trigger level, the payout at maturity will be par plus the final contingent coupon.
Otherwise, investors will be 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
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| Underlying indexes: | Russell 2000, S&P 500
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| Amount: | $1,325,790
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| Maturity: | March 31, 2025
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| Coupon: | 6.6% per year payable quarterly if each index closes at or above barrier level on observation date for that quarter
|
| Price: | Par of $10
|
| 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
|
| Call option: | At par plus contingent coupon, if any, on any quarterly observation date after one year
|
| Initial index levels: | 1,240.409 for Russell, 2,061.02 for S&P
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| Coupon barrier levels: | 868.286 for Russell, 1,442.71 for S&P; 70% of initial levels
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| Trigger levels: | 620.205 for Russell, 1,030.51 for S&P; 50% of initial levels
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| Pricing date: | March 27
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| Settlement date: | March 31
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 3.5%
|
| Cusip: | 90274P567
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