UBS to sell trigger callable contingent yield notes linked to indexes

By Devika Patel

Knoxville, Tenn., July 6 – UBS AG, London Branch plans to price trigger callable contingent yield notes with daily coupon observation due Jan. 19, 2021 linked to the least performing of the Russell 2000 index, the S&P 500 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 the rate of 9.85% per year if each index’s closing level remains at or above its coupon barrier level, 75% of its initial level, on each day during that quarter.

The notes will be callable at par of $10 on each quarterly observation date other than the final one beginning on Oct. 15, 2018.

If the notes are not called and each index finishes at or above its 70% trigger level on Jan. 13, 2021, the payout at maturity will be par plus any coupon. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.

UBS Securities LLC is the agent, with Morgan Stanley Wealth Management handling distribution.

The notes (Cusip: 90270KSU4) will price on July 13 and settle on July 18.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.