Published on 6/21/2016 in the Prospect News Structured Products Daily.
New Issue: UBS prices $7.78 million trigger callable contingent yield notes on three indexes
By Marisa Wong
Morgantown, W.Va., June 10 – UBS AG, London Branch priced $7.78 million of trigger callable contingent yield notes due June 25, 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 11.1% if each index closes at or above 65% of its initial level on the observation date for that quarter.
The notes will be callable at par of $10 on any quarterly observation date.
If the notes are not called and each index finishes at or above its 65% downside threshold 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: | $7,783,000
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| Maturity: | June 25, 2018
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| Coupon: | 11.1% per year, payable on a quarter if each index closes at or above its barrier level on the observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any index finishes below downside threshold, in which case full exposure to any losses of worst performing index
|
| Call option: | At par quarterly
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| Initial levels: | 2,849.17 for Euro Stoxx, 2,071.22 for S&P, 1,144.698 for Russell
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| Barriers/downside thresholds: | 1,851.96 for Euro Stoxx, 1,346.29 for S&P, 744.054 for Russell; 65% of initial levels
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| Pricing date: | June 17
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| Settlement date: | June 24
|
| Agents: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
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| Cusip: | 90275R737
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