Published on 11/7/2016 in the Prospect News Structured Products Daily.
New Issue: UBS prices $5.11 million trigger contingent yield notes linked to three indexes
By Angela McDaniels
Tacoma, Wash., Nov. 7 – UBS AG, London Branch priced $5.11 million of trigger callable contingent yield notes with daily coupon observation due May 13, 2019 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 8.6% per year if each index’s closing level remains at or above its coupon barrier, 65% of its initial level, on each day during that quarter.
The notes are callable at par of $10 on each quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its trigger level, 55% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | Nasdaq-100, Russell 2000 and S&P 500
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| Amount: | $5.11 million
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| Maturity: | May 13, 2019
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| Coupon: | 8.6% per year, payable quarterly if each index closes at or above its coupon barrier on each day during that quarter
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above trigger level, par; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
|
| Call option: | At par on each quarterly observation date other than final one
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| Initial index levels: | 4,660.457 for Nasdaq-100, 1,163.439 for Russell 2000 and 2,085.18 for S&P 500
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| Coupon barriers: | 3,029.297 for Nasdaq-100, 756.235 for Russell 2000 and 1,355.37 for S&P 500; 65% of initial levels
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| Downside thresholds: | 2,563.251 for Nasdaq-100, 639.891 for Russell 2000 and 1,146.85 for S&P 500; 55% of initial levels
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| Pricing date: | Nov. 4
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| Settlement date: | Nov. 14
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 1.25%
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| Cusip: | 90275Y765
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