UBS plans seven-year call warrants tied to MSCI Emerging Markets index

By Toni Weeks

San Luis Obispo, Calif., Jan. 28 – UBS AG, London Branch plans to price European-style, cash-settled call warrants due Feb. 4, 2022 linked to the MSCI Emerging Markets index, according to a 424B2 filing with the Securities and Exchange Commission.

The notional amount is $38,461.54 to $41,666.67 per warrant. The initial investment will be $10,000 per warrant, or 24% to 26% 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 multiplied by the index return and (b) zero.

The index return must be greater than 23.7% to 25.7% 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.

The exact terms will be determined at pricing.

UBS Financial Services, Inc. and UBS Investment Bank are the agents.

The warrants are expected to price Jan. 30 and settle Feb. 4.

The Cusip number is 90274F809.

© 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.