Published on 4/12/2016 in the Prospect News Structured Products Daily.
New Issue: UBS prices $1.86 million trigger callable contingent yield notes on three indexes
By Tali Rackner
Norfolk, Va., April 12 – UBS AG, London Branch priced $1.86 million of trigger callable contingent yield notes with daily coupon observation due April 4, 2018 linked to the worst performing of the Euro Stoxx 50 index, 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 10% 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 65% 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 with daily coupon observation
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| Underlying indexes: | Euro Stoxx 50 index, Russell 2000 index and S&P 500 index
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| Amount: | $1,859,000
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| Maturity: | April 4, 2018
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| Coupon: | 10% 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 of $10
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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 on any quarterly observation other than final date
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| Initial levels: | 3,004.87 for Euro Stoxx, 1,109.082 for Russell, 2,055.01 for S&P,
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| Barrier/trigger levels: | 1,953.17 for Euro Stoxx, 720.903 for Russell, 1,335.76 for S&P; 65% 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: | 1.5%
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| Cusip: | 90275R323
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