UBS to price 0% performance securities linked to index basket

By Jennifer Chiou

New York, Jan. 28 - UBS AG plans to price 0% performance securities with contingent protection due Feb. 28, 2013 linked to an index basket, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the Dow Jones Euro Stoxx 50 index with a 35% weight, the FTSE 100 index with a 25% weight, the Nikkei 225 index with a 25% weight, the Swiss Market index with a 5% weight, the S&P/ASX 200 index with a 5% weight and the MSCI Emerging Markets index with a 5% weight.

The payout at maturity will be par of $10.00 plus any percentage increase in the basket level multiplied by the participation rate, which is expected to be 123% to 133% and will be set at pricing.

If the final basket level is equal to or less than the initial basket level, the payout will be par unless the basket level closes below the trigger level - 50% of its initial level - during the life of the securities, in which case investors will be fully exposed to the decline.

The notes are expected to price on Feb. 26 and settle on Feb. 29.

UBS Financial Services Inc. and UBS Investment Bank will be the underwriters.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.