Published on 8/19/2014 in the Prospect News Structured Products Daily.
New Issue: UBS prices $275,952 three-year call warrants linked to S&P 500
By Angela McDaniels
Tacoma, Wash., Aug. 19 – UBS AG, London Branch priced $275,952.30 of European-style, cash-settled call warrants expiring Aug. 15, 2017 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The 2,249 warrants have a notional amount of $1,000 each, or $2.25 million in total, and sold for $122.70 each, or 12.27% of the notional amount.
The warrants will be automatically exercised on the expiration date if the index's final level is greater than the initial index level. The cash settlement amount will be the greater of (a) the notional amount per warrant multiplied by the index return and (b) zero. The cash settlement payment date is Aug. 18, 2017.
The index return must be greater than 12.27% for investors to receive a positive return on their initial investments.
If the index's final level is equal to or less than the initial index level, the warrants will expire worthless and investors will lose their entire initial investments in the warrants.
UBS Investment Bank is the underwriter, and J.P. Morgan Securities LLC is the agent.
| Issuer: | UBS AG, London Branch
|
| Issue: | Call warrants
|
| Underlying index: | S&P 500
|
| Warrants: | 2,249
|
| Notional amount: | $1,000 each, or $2,249,000 total
|
| Price: | $122.70 each, or $275,952.30 total
|
| Expiration date: | Aug. 15, 2017
|
| Cash settlement date: | Aug. 18, 2017
|
| Payout: | If index's final level is greater than initial index level, warrants will be automatically exercised and investors will receive greater of (a) notional amount per warrant multiplied by index return and (b) zero; if index's final level is equal to or less than initial index level, warrants will expire worthless and investors will receive nothing
|
| Initial index level: | 1,955.06
|
| Pricing date: | Aug. 15
|
| Settlement date: | Aug. 20
|
| Underwriter: | UBS Investment Bank
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | $6.50 per warrant
|
| Cusip: | 90273L187
|
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