Published on 3/28/2017 in the Prospect News Structured Products Daily.
New Issue: UBS sells $6.18 million of trigger callable contingent yield notes on three indexes
By Devika Patel
Knoxville, Tenn., March 28 – UBS AG, London Branch priced $6.18 million of trigger callable contingent yield notes with daily coupon observation due Oct. 1, 2019 linked to the worst performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 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 9% if each index’s closing level is at least 65% of its initial level on each day during the quarter.
The notes will be callable in whole but not in part on any quarterly observation date other than the final one at par of $10 plus any coupon.
If the notes are not called and each index finishes at or above its 65% trigger 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 with daily coupon observation
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| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $6.18 million
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| Maturity: | Oct. 1, 2019
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| Coupon: | 9% per year, payable quarterly if each index closes at or above its barrier level each day for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par unless any index finishes below trigger level, in which case full exposure to any losses of worst performing index
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| Call option: | At par plus any coupon on any quarterly observation other than final date
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| Initial levels: | 2,343.98 for S&P, 1,354.642 for Russell, 3,444.15 for Euro Stoxx
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| Barrier/trigger levels: | 1,523.59 for S&P, 880.517 for Russell, 2,238.70 for Euro Stoxx; 65% of initial levels
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| Pricing date: | March 24
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| Settlement date: | March 31
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| Agent: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 1.5%
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| Cusip: | 90280M830
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