Published on 12/30/2016 in the Prospect News Structured Products Daily.
New Issue: UBS sells $27.18 million trigger autocallable contingent yield notes on Russell, Dow
By Wendy Van Sickle
Columbus, Ohio, Dec. 30 – UBS AG, London Branch priced $27.18 million of trigger autocallable contingent yield notes due Dec. 31, 2026 linked to the lesser performing of the Russell 2000 index and the Dow Jones industrial average, 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 7.33% if each index closes at or above its 70% coupon barrier on the observation date for that quarter.
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 after one year.
The payout at maturity will be par unless either index finishes below its 50% downside threshold level, in which case investors will be fully exposed to the decline of the lesser-performing index.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London branch
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying indexes: | Russell 2000 and Dow Jones industrial average
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| Amount: | $27,182,070
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| Maturity: | Dec. 31, 2026
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| Coupon: | 7.33%, payable quarterly if each index closes at or above coupon barrier on observation date
|
| Price: | Par of $10
|
| Call: | After one year, at par plus contingent coupon if each index closes at or above initial level on any quarterly observation date
|
| Payout at maturity: | Par unless either index closes below downside threshold level, in which case 1% loss for each 1% decline of worse performing index
|
| Initial levels: | 1,360.825 for Russell, 19,833.68 for Dow
|
| Coupon barriers: | 952.578 for Russell and 13,883.58 for Dow; 70% of initial levels
|
| Downside thresholds: | 680.413 for Russell and 9,916.84 for Dow; 50% of initial levels
|
| Pricing date: | Dec. 28
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| Settlement date: | Dec. 30
|
| Agents: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 3.5%
|
| Cusip: | 90280M228
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