Published on 4/5/2016 in the Prospect News Structured Products Daily.
New Issue: UBS prices $8 million trigger callable contingent yield notes tied to three indexes
By Marisa Wong
Morgantown, W.Va., April 5 – UBS AG, London Branch priced $8 million of trigger callable contingent yield notes due Oct. 1, 2018 linked to the worst performing of the Euro Stoxx 50 index, the S&P 500 index and the Russell 2000 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 10.5% if each index’s closing level is at least 60% of its initial level on each day during the quarter.
The notes will be callable at par of $10 on any quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its 60% trigger level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger callable contingent yield notes
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| Underlying indexes: | Euro Stoxx 50 index, Russell 2000 index and S&P 500 index
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| Amount: | $8 million
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| Maturity: | Oct. 1, 2018
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| Coupon: | 10.5% per year, payable quarterly if each index closes at or above its barrier level each day for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any index finishes below trigger level, in which case full exposure to any losses of worst performing index
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| Call option: | At par quarterly
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| Initial levels: | 2,035.94 for S&P, 2,986.73 for Euro Stoxx, 1,079.537 for Russell
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| Barrier/trigger levels: | 1,221.56 for S&P, 1,792.04 for Euro Stoxx, 647.722 for Russell; 60% of initial levels
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| Pricing date: | March 29
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| Settlement date: | March 31
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 1%
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| Cusip: | 90275R331
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