Published on 12/20/2016 in the Prospect News Structured Products Daily.
New Issue: UBS prices $1.24 million trigger callable contingent yield notes tied to three indexes
By Wendy Van Sickle
Columbus, Ohio, Dec. 20 – UBS AG, London Branch priced $1.24 million of trigger callable contingent yield notes with daily coupon observation due Dec. 24, 2018 linked to the least performing of the Euro Stoxx 50 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 9.2% per year if each index’s closing level remains at or above its coupon barrier, 65% 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.
If the notes are not called and each index finishes at or above its downside threshold, 65% 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
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| Issue: | Trigger callable contingent yield notes
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| Underlying indexes: | Euro Stoxx 50 index, Russell 2000 index and S&P 500 index
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| Amount: | $1,240,500
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| Maturity: | Dec. 24, 2018
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| Coupon: | 9.2% per year, payable on a quarter if each index closes at or above coupon barrier each day 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
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| Initial levels: | 3,259.24 for Stoxx, 2,258.07 for S&P, 1,364.189 for Russell
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| Coupon barrier/downside threshold: | 2,118.51 for Stoxx, 1,467.75 for S&P, 886.723 for Russell; 65% of initial levels
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| Pricing date: | Dec. 16
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| Settlement date: | Dec. 23
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 1.5%
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| Cusip: | 90280M285
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