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Published on 10/3/2016 in the Prospect News Structured Products Daily.

New Issue: UBS prices $4.75 million capped trigger gears linked to Russell 2000

By Marisa Wong

Morgantown, W.Va., Oct. 3 – UBS AG, London Branch priced $4.75 million of 0% capped trigger gears due Sept. 30, 2019 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index gains, the payout at maturity will be par plus double the gain, up to a maximum return of 33.66%. If the index declines by up to 25%, the payout will be par. Otherwise, investors will be fully exposed to the decline of the index.

UBS Financial Services Inc. and UBS Investment Bank are the agents.

Issuer:UBS AG, London Branch
Issue:Capped trigger gears
Underlying index:Russell 2000
Amount:$4,751,400
Maturity:Sept. 30, 2019
Coupon:0%
Price:Par of $10
Payout at maturity:Par plus double any index gain, up to a maximum return of 33.66%; par if the index falls by up to 25%; full exposure to any losses if the index finishes below the 75% downside threshold level
Initial level:1,246.381
Downside threshold:934.786, 75% of initial level
Pricing date:Sept. 27
Settlement date:Sept. 30
Agents:UBS Financial Services Inc. and UBS Investment Bank
Fees:2.5%
Cusip:90275Y310

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