By Marisa Wong
Madison, Wis., June 9 – UBS AG, London Branch priced $2.06 million of trigger phoenix autocallable optimization securities due June 11, 2018 linked to the common stock of Walt Disney Co., according to an FWP filing with the Securities and Exchange Commission.
If Walt Disney stock closes at or above the trigger price – 80.5% of the initial share price – on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 6.5% per year. Otherwise, no coupon will be paid that quarter.
If the shares close at or above the initial price on a quarterly observation date after six months, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Walt Disney shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.
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: | Walt Disney Co. (Symbol: DIS)
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Amount: | $2,061,000
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Maturity: | June 11, 2018
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Coupon: | 6.5%, 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 Walt Disney shares finish at or above trigger price; otherwise, par plus stock return
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Call: | Automatically at par plus contingent coupon if Walt Disney shares close at or above initial price on any quarterly observation date after six months
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Initial share price: | $110.30
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Trigger price: | $88.79, 80.5% of initial price
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Pricing date: | June 5
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Settlement date: | June 10
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Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
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Fees: | 2%
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Cusip: | 90274T676
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