Published on 12/17/2013 in the Prospect News Structured Products Daily.
New Issue: UBS prices $5.92 million trigger phoenix callable notes linked to Euro Stoxx, S&P 500
By Susanna Moon
Chicago, Dec. 17 - UBS AG, London Branch priced $5.92 million trigger phoenix callable optimization securities due Dec. 19, 2023 linked to the Euro Stoxx 50 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index finishes at or above its coupon barrier, 70% of its initial level, on a quarterly observation date, the issuer will pay a contingent coupon at the rate of 8% per year.
A trigger event will occur if either index closes below its 50% trigger level on the Dec. 13, 2023 trigger observation date.
If a trigger event does not occur and the final level of each index is greater than or equal to its respective coupon barrier, the payout at maturity will be par plus the coupon.
If a trigger event does not occur and the final level of either index is less than its coupon barrier, the payout will be par.
If a trigger event occurs, investors will be fully exposed to the decline of the least-performing index.
The notes are callable at par plus the coupon on any quarterly observation date after one year.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix callable optimization securities
|
| Underlying indexes: | Euro Stoxx 50 and S&P 500
|
| Amount: | $5,919,430
|
| Maturity: | Dec. 19, 2023
|
| Coupon: | 8% per year, payable quarterly if both indexes close at or above their coupon barriers on observation date for that quarter
|
| Price: | Par of $10.00
|
| Trigger event: | Occurs if either index closes below its respective trigger level on Dec. 13, 2023
|
| Payout at maturity: | If trigger event does not occur and final level of each index is greater than or equal to its respective coupon barrier, par plus the coupon; if trigger event does not occur and either index finishes below coupon barrier, par; if trigger event occurs, full exposure to decline of least-performing index
|
| Call option: | At par plus contingent coupon, if any, on any quarterly observation date beginning Dec. 15, 2014
|
| Initial index levels: | 2,921.92 | for Euro Stoxx and 1,775.32 for S&P
|
| Coupon barriers: | 2,045.34 for Euro Stoxx and 1,242.72 for S&P, 70% of initial levels
|
| Trigger levels: | 1,460.96 for Euro Stoxx and 887.66 for S&P, 50% of initial levels
|
| Pricing date: | Dec. 13
|
| Settlement date: | Dec. 18
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 3.5%
|
| Cusip: | 90271R632
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