UBS halts new issuance of 38 ETNs, launches six series B products

New York, Oct. 8 – UBS AG, London Branch announced that it will not issue any new notes in its 38 outstanding series of ETracs exchange-traded notes. In their place, the bank launched six new ETracs ETNs, which lack a guarantee from UBS Switzerland AG, but are otherwise “substantially the same.”

UBS said the new ETracs will be designated series B while the existing ETNs, which will continue to trade, are series A.

In addition, UBS may sell series A ETNs that it has already issued but currently owns in addition to the ETNs which are held by the public. It may also resell series A ETNs that it repurchases from the public.

The new series B ETracs are expected to begin trading on Friday on NYSE ARCA.

They were sold to UBS Securities LLC on Thursday at the same price as the closing indicative value of the corresponding series A notes.

The issuer priced, according to 424B2 filing with the Securities and Exchange Commission:

• $37.5 million principal amount of ETracs Alerian MLP index exchange-traded notes, series B, due 2042. The symbol is “AMUB”;

• $37.5 million principal amount of ETracs Wells Fargo Business Development Company index ETNs, series B, due 2041. The symbol is “BDCZ”;

• $37.5 million principal amount of 2×Leveraged Long ETracs Wells Fargo Business Development Company index ETNs, series B, due 2041. The symbol is “LBDC”;

• $37.5 million principal amount of Etracs Alerian MLP Infrastructure index ETNs, series B, due 2040. The symbol is “MLPB”;

• $37.5 million principal amount of Etracs UBS Bloomberg Constant Maturity Commodity Index Total Return ETNs, series B, due 2038. The symbol is “UCIB”; and

• $37.5 million principal amount of Etracs Monthly Pay 2xLeveraged Mortgage REIT ETNs, series B, due 2042 linked to the Market Vectors Global Mortgage REITs index. The symbol is “MRRL”.

In each case, the notes were sold to UBS Securities LLC on Thursday. After Thursday, from time to time UBS may sell a portion of the ETNs and issue and sell additional ETNs at market prices prevailing at the time of sale, at prices related to market prices or at negotiated prices.

UBS plans to issue up to $100 million of each series of series B ETracs.

UBS said it may launch additional series B ETracs linked to the same indexes as outstanding series A notes.

UBS Switzerland became a co-obligor on the series A notes following the transfer of some assets from UBS AG to UBS Switzerland.

The 38 existing series A ETracs are as follows:

• ETracs Alerian MLP Infrastructure Index ETN, symbol “MLPI,” with $110 million issued, $64,524,130 held by the public and $45,475,870 held by UBS;

• ETracs Alerian MLP Index ETN, symbol “AMU,” with $28 million issued, $20,577,274 held by the public and $7,422,726 held by UBS;

• ETracs Monthly Pay 2x Leveraged Mortgage REIT ETN, symbol “MORL,” with $31 million issued, $19,245,788 held by the public and $11,754,212 held by UBS;

• ETracs 2x Monthly Leveraged Long Alerian MLP Infrastructure Index ETN, symbol “MLPL,” with $10 million issued, $8,557,606 held by the public and $1,442,394 held by UBS;

• ETracs 2x Leveraged Long Wells Fargo Business Development Company Index ETN, symbol “BDCL,” with $28 million issued, $13,216,789 held by the public and $14,783,211 held by UBS;

• ETracs Monthly Pay 2x Leveraged Closed-End Fund ETN, symbol “CEFL,” with $20 million issued, $9,434,326 held by the public and $10,565,674 held by UBS;

• ETracs Bloomberg Commodity Index Total Return ETN, symbol “DJCI,” with $30 million issued, $2,262,973 held by the public and $27,737,027 held by UBS;

• ETracs CMCI Total Return ETN, symbol “UCI,” with $12 million issued, $3,110,820 held by the public and $8,889,180 held by UBS;

• ETracs Linked to the Wells Fargo Business Development Company Index ETN, symbol “BDCS,” with $8 million issued, $2,866,171 held by the public and $5,133,829 held by UBS;

• ETracs Monthly Reset 2x Leveraged S&P 500 Total Return ETN, symbol “SPLX,” with $2 million issued, $45,349 held by the public and $1,954,651 held by UBS;

• ETracs Monthly Pay 2x Leveraged Wells Fargo MLP Ex-Energy ETN, symbol “LMLP,” with $4 million issued, $1,185,909 held by the public and $2,814,091 held by UBS;

• ETracs Monthly Pay 2x Leveraged Dow Jones Select Dividend Index ETN, symbol “DVYL,” with $4 million issued, $437,693 held by the public and $3,562,307 held by UBS;

• ETracs Alerian Natural Gas MLP Index ETN, symbol “MLPG,” with $4 million issued, $306,806 held by the public and $3,693,194 held by UBS;

• ETracs Monthly Pay 2x Leveraged Diversified High Income ETN, symbol “DVHL,” with $4 million issued, $845,848 held by the public and $3,154,152 held by UBS;

• ETracs Monthly Reset 2x Leveraged ISE Exclusively Homebuilders ETN, symbol “HOML,” with $4 million issued, $359,966 held by the public and $3,640,034 held by UBS;

• ETracs ISE Exclusively Homebuilders ETN, symbol “HOMX,” with $4 million issued, $20,694 held by the public and $3,979,306 held by UBS;

• ETracs Wells Fargo MLP Ex-Energy ETN, symbol “FMLP,” with $4 million issued, $166,842 held by the public and $3,833,158 held by UBS;

• ETracs S&P 500 Veqtor Switch ETN, symbol “VQTS,” with $4 million issued, $226,407 held by the public and $3,773,593 held by UBS;

• ETracs Monthly Pay 2x Leveraged US High Dividend Low Volatility ETN, symbol “HDLV,” with $4 million issued, $620,197 held by the public and $3,379,803 held by UBS;

• ETracs Monthly Pay 2x Leveraged MSCI US REIT Index ETN, symbol “LRET,” with $4 million issued, $59,026 held by the public and $3,940,974 held by UBS;

• ETracs Diversified High Income ETN, symbol “DVHI,” with $1 million issued, $85,131 held by the public and $914,869 held by UBS;

• ETracs CMCI Long Platinum Total Return ETN, symbol “PTM,” with $5 million issued, $972,568 held by the public and $4,027,432 held by UBS;

• ETracs Monthly Pay 2x Leveraged US Small Cap High Dividend ETN, symbol “SMHD,” with $4 million issued, $348,165 held by the public and $3,651,835 held by UBS;

• ETracs Monthly Pay 2x Leveraged S&P Dividend ETN, symbol “SDYL,” with $4 million issued, $130,212 held by the public and $3,869,788 held by UBS;

• ETracs S&P 500 Gold Hedged Index ETN, symbol “SPGH,” with $4 million issued, $35,276 held by the public and $3,964,724 held by UBS;

• ETracs CMCI Food Total Return ETN, symbol “FUD,” with $4 million issued, $296,796 held by the public and $3,703,204 held by UBS;

• ETracs Monthly Pay 2x Leveraged Dow Jones International Real Estate ETN, symbol “RWX,” with $4 million issued, $47,353 held by the public and $3,952,647 held by UBS;

• ETracs CMCI Agriculture Total Return ETN, symbol “UAG,” with $2 million issued, $177,847 held by the public and $1,822,153 held by UBS;

• ETracs Wells Fargo MLP Index ETN, symbol “MLPW,” with $4 million issued, $198,456 held by the public and $3,801,544 held by UBS;

• ETracs Daily Long-Short VIX ETN, symbol “XVIX,” with $4 million issued, $42,618 held by the public and $3,957,382 held by UBS;

• ETracs CMCI Gold Total Return ETN, symbol “UBG,” with $4 million issued, $142,633 held by the public and $3,857,367 held by UBS;

• ETracs CMCI Silver Total Return ETN, symbol “USV,” with $2 million issued, $97,789 held by the public and $1,902,211 held by UBS;

• ETracs CMCI Livestock Total Return ETN, symbol “UBC,” with $2 million issued, $4,525 held by the public and $1,995,475 held by UBS;

• ETracs CMCI Energy Total Return ETN, symbol “UBN,” with $2 million issued, $92,977 held by the public and $1,907,023 held by UBS;

• ETracs 1x Monthly Short Alerian MLP Infrastructure Total Return Index ETN, symbol “MLPS,” with $4 million issued, $96,297 held by the public and $3,903,703 held by UBS;

• ETracs CMCI Industrial Metals Total Return ETN, symbol “UBM,” with $2 million issued, $58,058 held by the public and $1,941,942 held by UBS;

• UBS AG FI Enhanced Big Cap Growth ETN, symbol “FBG,” with $30 million issued, $922,128 held by the public and $29,077,872 held by UBS;

• UBS AG FI Enhanced Large Cap Growth ETN, symbol “FBGX,” with $7.5 million issued, $6,586,878 held by the public and $913,122 held by UBS;

© 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.