Published on 1/18/2017 in the Prospect News Structured Products Daily.
New Issue: UBS sells $14.2 million trigger autocallable contingent yield notes on S&P, Russell
By Marisa Wong
Morgantown, W.Va., Jan. 18 – UBS AG, London Branch priced $14.2 million of trigger autocallable contingent yield notes due Jan. 16, 2020 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 an annual rate of 7.3% 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 six months.
The payout at maturity will be par unless either index finishes below its 70% 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
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| Underlying indexes: | Russell 2000 and S&P 500
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| Amount: | $14,204,040
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| Maturity: | Jan. 16, 2020
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| Coupon: | 7.3%, payable quarterly if each index closes at or above coupon barrier on observation date
|
| Price: | Par of $10
|
| Call: | After six months, 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 finishes below downside threshold level, in which case 1% loss for each 1% decline of worse performing index
|
| Initial levels: | 1,372.047 for Russell, 2,274.64 for S&P
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| Coupon barriers: | 2,274.64 for Russell and 1,592.25 for S&P; 70% of initial levels
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| Downside thresholds: | 2,274.64 for Russell and 1,592.25 for S&P; 70% of initial levels
|
| Pricing date: | Jan. 13
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| Settlement date: | Jan. 19
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 2%
|
| Cusip: | 90280M376
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