Published on 6/13/2017 in the Prospect News Structured Products Daily.
New Issue: UBS sells $14.31 million trigger autocallable contingent yield notes on two indexes
By Devika Patel
Knoxville, Tenn., June 13 – UBS AG, London Branch priced $14.31 million of trigger autocallable contingent yield notes due June 15, 2020 linked to the worst 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 6.4% if each index’s closing level is at least 70% of its initial level on the observation date for that quarter.
After six months, the notes will be automatically called at par if both indexes close at or above their initial levels on any quarterly observation date prior to maturity.
If the notes are not called and each index finishes at or above its 70% downside threshold 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 autocallable contingent yield notes
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| Underlying indexes: | Russell 2000 and S&P 500
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| Amount: | $14,308,660
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| Maturity: | June 15, 2020
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| Coupon: | 6.4% per year, payable quarterly if each index closes at or above its barrier level on observation date for that quarter
|
| Price: | Par of $10
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| Payout at maturity: | Par unless either index finishes below trigger level, in which case full exposure to any losses of worst performing index
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| Call: | After six months, automatically at par if both indexes close at or above their initial levels on any quarterly observation date prior to maturity
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| Initial levels: | 1,421.707 for Russell, 2,431.77 for S&P
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| Coupon barrier levels: | 995.195 for Russell, 1,702.24 for S&P; 70% of initial levels
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| Trigger levels: | 995.195 for Russell, 1,702.24 for S&P; 70% of initial levels
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| Pricing date: | June 9
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| Settlement date: | June 14
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| Agent: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2%
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| Cusip: | 90280V558
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