UBS announces mandatory redemptions for three series of ETracs

By Sarah Lizee

Olympia, Wash., March 13 – UBS Investment Bank announced mandatory redemptions for its $100 million Monthly Reset 2xLeveraged exchange-traded access securities due March 13, 2045 linked to the ISE Exclusively Homebuilders index (NYSE: HOML, Cusip: 90274P302), $100 million 2xMonthly Leveraged ETracs due Feb. 12, 2046 linked to the S&P MLP index (NYSE: MLPZ, Cusip: 90274D242) and $100 million Monthly Pay 2xLeveraged ETracs due Feb. 6, 2045 linked to the US Small Cap High Dividend index (NYSE: SMHD, Cusip: 90274D838).

The securities due March 13, 2045 are being redeemed as a result of the occurrence of an acceleration upon minimum indicative value on March 12, the acceleration trigger date, triggered as a result of the intraday indicative value of the securities on the acceleration date decreasing by more than 60% in value from the closing indicative value of the securities on the previous monthly valuation date.

The securities due Feb. 12, 2046 and Feb. 6, 2045 are being redeemed as a result of the occurrence of an acceleration upon minimum indicative value, triggered as a result of the indicative value of the securities being less than $5.00 on March 12.

The acceleration settlement date for the securities due March 13, 2045 and Feb. 6, 2045 will be March 23, and the acceleration settlement date for the securities due Feb. 12, 2046 will be March 24.

According to 424B2 filings with the Securities and Exchange Commission, the acceleration amount will equal (a) the product of (i) the current principal amount and (ii) the index factor as of the last index business day in the acceleration valuation period plus (b) the coupon amount with respect to the coupon valuation date immediately preceding the acceleration date if on the last index business day in the acceleration valuation period the coupon ex-date with respect to such coupon amount has not yet occurred, plus (c) the adjusted coupon amount, if any, minus (d) the accrued tracking fee as of the last index business day in the acceleration valuation period, minus (e) the accrued financing charges as of the last index business day in the acceleration valuation period plus (f) the stub reference distribution amount as of the last index business day in the acceleration valuation period, if any.

UBS is a financial services company based in Zurich.

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