By Devika Patel
Knoxville, Tenn., Dec. 11 – UBS AG priced $4.3 million of 0% trigger autocallable optimization securities due Dec. 11, 2020 linked to the SPDR S&P Oil & Gas Exploration and Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the fund closes at or above the trigger price – 50% of the initial share price – on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 9.45%. Otherwise, no coupon will be paid that quarter.
If the fund closes at or above the initial price on a quarterly observation date after Dec. 7, 2016, the notes will be called at par plus the contingent coupon.
If the notes are not called and the fund finishes at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.
UBS Securities LLC is the agent.
| Issuer: | UBS AG
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| Issue: | Trigger autocallable optimization securities
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| Underlying fund: SPDR S&P Oil & Gas Exploration and Production ETF
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| Amount: | $4.3 million
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| Maturity: | Dec. 11, 2020
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| Coupon: | 9.45%, payable quarterly if fund closes at or above trigger price on observation date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | Par plus contingent coupon if fund finishes at or above trigger price; otherwise, par plus fund return
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| Call: | Automatically at par plus contingent coupon if fund closes at or above initial price on a quarterly observation date after Dec. 7, 2016
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| Initial share price: | $32.03
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| Trigger price: | $16.02, 50% of initial price
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| Pricing date: | Dec. 8
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| Settlement date: | Dec. 11
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| Agent: | UBS Securities LLC
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| Fees: | 2.5%
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| Cusip: | 90275L177
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