UBS announces 1-for-4 reverse split of 2x Leveraged Next Generation Internet exchange-traded notes

By Jennifer Chiou

New York, Sept. 12 - UBS AG, London Branch executed the 1-for-4 reverse split of its $10 million of 0% ETracs Monthly 2x Leveraged Next Generation Internet exchange-traded notes due July 19, 2041, according to a 424B3 filing with the Securities and Exchange Commission.

The ETNs, previously referred to as ETracs Monthly 2x Leveraged Internet IPO ETNs, now have a face amount of $100 per security.

As announced, under the terms of the notes, UBS has the right to reverse split the notes if their current principal amount falls below $10.00. As of Aug. 27, the current principal amount of the notes was $5.9583.

The record date for the reverse split was 5 p.m. ET on Sept. 11. Investors who hold a number of notes that is not divisible by four will receive one reverse-split adjusted note for every four notes held and a cash payment for any odd number of notes remaining.

As already noted, the cash amount will be set on Sept. 18 based on the closing indicative value of the reverse-split-adjusted notes on that date and will be paid on Sept. 21.

The reverse-split-adjusted notes have a new Cusip number of 90268A659. The previous Cusip was 90268A766.

The notes trade on the NYSE Arca. The ticker symbol, "EIPL," will not be changed.

The company plans to sell up to $100 million of the securities. The initial $10 million of notes priced at par of $25. The remaining $90 million will be sold from time to time at varying prices.

UBS Investment Bank is the agent.

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