Published on 1/24/2017 in the Prospect News Structured Products Daily.
New Issue: UBS prices $25.42 million trigger callable contingent yield notes on three indexes
By Marisa Wong
Morgantown, W.Va., Jan. 24 – UBS AG, London Branch priced $25.42 million of trigger callable contingent yield notes due July 27, 2021 linked to the least performing of the MSCI EAFE index, 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 the rate of 9% per year if each index closes at or above its coupon barrier, 60% of its initial level, on the observation date for that quarter.
The notes will be 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 downside threshold, 60% of its initial 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
|
| Issue: | Trigger callable contingent yield notes
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| Underlying indexes: | MSCI EAFE index, Russell 2000 index and S&P 500 index
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| Amount: | $25,424,000
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| Maturity: | July 27, 2021
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| Coupon: | 9% per year, payable on a quarter if each index closes at or above coupon barrier on 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
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| Call option: | At par quarterly prior to maturity
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| Initial levels: | 2,271.31 for S&P 500, 1,351.848 for Russell 2000 and 1,719.58 for MSCI EAFE
|
| Coupon barriers: | 1,362.79 for S&P 500, 811.109 for Russell 2000 and 1,031.75 for MSCI EAFE; 60% of initial levels
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| Downside thresholds: | 1,362.79 for S&P 500, 811.109 for Russell 2000 and 1,031.75 for MSCI EAFE; 60% of initial levels
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| Pricing date: | Jan. 20
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| Settlement date: | Jan. 27
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2%
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| Cusip: | 90280M483
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