By Angela McDaniels
Tacoma, Wash., March 26 - UBS AG, London Branch sold $25 million of 0% ETracs Monthly Reset 2x Leveraged S&P 500 Total Return exchange-traded notes due March 25, 2044 linked to the S&P 500 Total Return index, according to a 424B2 filing with the Securities and Exchange Commission.
The issuer registered to sell up to $50 million of the notes. The remaining notes will be sold from time to time at varying prices.
The notes have a face amount of $25 each.
The securities are designed to provide a two times leveraged long exposure to the performance of the index compounded on a monthly basis, reduced by the accrued fees
The notes are putable, subject to a minimum of 50,000 notes and a redemption fee of 0.125%. They are callable in whole beginning March 30, 2015. The notes will be accelerated if the indicative value equals $5 or less or decreases 60% in value from the closing indicative value on the previous monthly valuation date.
The notes are listed on NYSE Arca under the symbol "SPLX."
UBS Investment Bank is the agent.
Payout
The payout at maturity will be the current principal amount plus 200% of the index return, which could be positive or negative, plus the final coupon amount minus the accrued fees, which are a tracking fee of 0.85% per year and a financing charge of Libor plus 40 basis points.
The current principal amount will be $25 until the first monthly valuation date. For each subsequent calendar month, the current principal amount is reset to the previous current principal amount plus two times the index return on the monthly valuation date minus accrued fees on the monthly valuation date.
When calculating the index return, the final level will be the average of the index's closing levels on the five business days ending on the final valuation date, and the initial level will be its closing level on the most recent monthly valuation date.
For each month, the monthly valuation date is the last business day of the previous calendar month.
| Issuer: | UBS AG, London Branch
|
| Issue: | ETracs Monthly Reset 2x Leveraged S&P 500 Total Return exchange-traded notes
|
| Underlying index: | S&P 500 Total Return
|
| Amount: | Up to $50 million
|
| Maturity: | March 25, 2044
|
| Coupon: | 0%
|
| Price: | Par of $25 for initial $25 million
|
| Payout at maturity: | Current principal amount plus 200% of index return plus final coupon amount minus accrued fees tracking fee of 0.85% per year and accrued financing charge of Libor plus 40 bps
|
| Call option: | In whole from March 30, 2015 onward
|
| Put option: | At any time, subject to minimum of 50,000 notes and 0.125% redemption fee
|
| Initial index level: | 3,362.44
|
| Pricing date: | March 25
|
| Settlement date: | March 28
|
| Agent: | UBS Investment Bank
|
| Fees: | None
|
| Listing: | NYSE Arca: SPLX
|
| Cusip: | 90270L792
|
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