By Toni Weeks
San Luis Obispo, Calif., May 19 – UBS AG, London Branch priced $5.54 million of trigger phoenix autocallable optimization securities due May 21, 2025 linked to the least performing of the MSCI Emerging Markets 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 8.53% 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 Emerging Markets and Russell 2000
|
| Amount: | $5,537,500
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| Maturity: | May 21, 2025
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| Coupon: | 8.53% annualized for each quarter that each index closes at or above coupon barrier level on quarterly observation date
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above coupon barrier level, par plus contingent coupon; if | either index finishes below coupon barrier level but each index finishes at or above 50% trigger level, par; otherwise, full exposure to decline of worst-performing index
|
| Call: | At par if each index closes at or above initial level on any quarterly observation date beginning May 18, 2016
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| Initial levels: | 1,043.4 for EM, 1,243.948 for Russell
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| Coupon barrier levels: | 730.38 for EM, 870.764 for Russell, 70% of initial levels
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| Trigger levels: | 521.7 for EM, 621.974 for Russell, 50% of initial levels
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| Pricing date: | May 15
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| Settlement date: | May 20
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 3.5%
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| Cusip: | 90274T296
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