By Susanna Moon
Chicago, Aug. 1 – UBS AG, London Branch priced $1.65 million of trigger phoenix autocallable optimization securities due Jan. 29, 2016 linked to Valeant Pharmaceuticals International, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 12.7% if Valeant stock closes at or above the trigger level, 70% of the initial share price, on an observation date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial price on a quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless Valeant shares finish below the trigger level, in which case investors will be fully exposed to any losses.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
Issuer: | UBS AG, London Branch
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Issue: | Trigger phoenix autocallable optimization securities
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Underlying stock: | Valeant Pharmaceuticals International, Inc. (Symbol: VRX)
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Amount: | $1,647,140
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Maturity: | Jan. 29, 2016
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Coupon: | 12.7% per year, payable quarterly if stock closes at or above trigger price on observation date for that quarter
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Price: | Par of $10.00
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Payout at maturity: | Par plus contingent coupon if Valeant shares finish at or above trigger price; otherwise, par plus stock return
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Call: | At par plus contingent coupon if Valeant shares close at or above initial price on any quarterly observation date
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Initial share price: | $123.70
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Trigger price: | $86.59, 70% of initial share price
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Pricing date: | July 29
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Settlement date: | July 31
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Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
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Fees: | 1.5%
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Cusip: | 90273E688
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