Published on 4/21/2016 in the Prospect News Structured Products Daily.
New Issue: UBS prices $2 million trigger contingent yield notes linked to three indexes
By Tali Rackner
Norfolk, Va., April 21 – UBS AG, London Branch priced $2 million of trigger callable contingent yield notes with daily coupon observation due Oct. 25, 2018 linked to the least performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 8.2% per year if each index’s closing level remains at or above its barrier level, 60% of its initial level, on each day during that quarter.
After one year, the notes are callable at par of $10 on each quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its 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 underwriters.
| 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: | Russell 2000, S&P 500 and Euro Stoxx 50
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| Amount: | $2 million
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| Maturity: | Oct. 25, 2018
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| Coupon: | 8.2% per year, payable quarterly if each index closes at or above its barrier level on each day during that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above trigger level, par; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
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| Call option: | After one year, at par on each quarterly observation date other than final one
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| Initial levels: | 1,139.278 for Russell 2000, 2,094.34 for S&P 500 and 3,064.03 for Euro Stoxx 50
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| Barrier/downside threshold: | 683.567 for Russell 2000, 1,256.60 for S&P 500 and 1,838.42 for Euro Stoxx 50; 60% of initial levels
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| Pricing date: | April 19
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| Settlement date: | April 22
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 1%
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| Cusip: | 90275R422
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