Published on 4/19/2016 in the Prospect News Structured Products Daily.
New Issue: UBS prices $11.7 million trigger autocallable contingent yield notes linked to Russell 2000, S&P 500
By Angela McDaniels
Tacoma, Wash., April 19 – UBS AG, London Branch priced $11.7 million of 0% trigger autocallable contingent yield notes due April 22, 2019 linked to the lesser 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 the rate of 7.6% per year if each index closes at or above its downside threshold level, 70% of its initial level, on the observation date for that quarter.
After six months, the notes will be automatically called at par of $10 if each index closes at or above its initial level on any quarterly observation date.
If the notes are not called and the final level of the lesser-performing index is greater than or equal to its downside threshold, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the lesser-performing index’s final level is less than its initial level.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $11,698,400
|
| Maturity: | April 22, 2019
|
| Coupon: | 7.6% per year, payable quarterly if each index closes at or above downside threshold level on observation day for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If final level of lesser-performing index is greater than or equal to downside threshold, par; otherwise, 1% loss for every 1% that lesser-performing index’s final level is less than initial level
|
| Call: | After six months, notes will be automatically called at par if each index closes at or above initial level on any quarterly observation date
|
| Initial levels: | 1,130.923 for Russell 2000 and 2,080.73 for S&P 500
|
| Downside thresholds: | 791.646 for Russell 2000 and 2,080.73 for S&P 500; 70% of initial levels
|
| Pricing date: | April 15
|
| Settlement date: | April 20
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 2%
|
| Cusip: | 90275R406
|
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