By Marisa Wong
Madison, Wis., May 22 - UBS AG, London Branch priced $4.88 million of trigger phoenix autocallable optimization securities due May 24, 2017 linked to the iShares Russell 2000 index fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the index fund closes at or above the trigger price - 65% of the initial share price - on a monthly observation date, the issuer will pay a contingent coupon for that month at the rate of 10.2%. Otherwise, no coupon will be paid that month.
If the shares close at or above the initial price on any monthly observation date after one year, the notes will be called at par plus the contingent coupon.
If the notes are not called and the shares finish 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 Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying ETF: | iShares Russell 2000 index fund
|
| Amount: | $4,875,780
|
| Maturity: | May 24, 2017
|
| Coupon: | 10.2%, payable monthly if shares close at or above trigger price on observation date for that month
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if shares finish at or above trigger price; otherwise, par plus ETF return
|
| Call: | Automatically at par plus contingent coupon if shares close at or above initial price on any monthly observation date beginning May 20, 2013
|
| Initial share price: | $74.60
|
| Trigger price: | $48.49, 65% of initial price
|
| Pricing date: | May 18
|
| Settlement date: | May 24
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 2.5%
|
| Cusip: | 90268U226
|
© 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.
