Published on 3/25/2014 in the Prospect News Structured Products Daily.
New Issue: UBS prices $835,000 phoenix autocallables tied to Weatherford
By Marisa Wong
Madison, Wis., March 25 - UBS AG, London Branch priced $835,000 of phoenix autocallable notes due April 8, 2015 linked to the common stock of Weatherford International Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 13.8% per year if Weatherford shares close at or above the barrier price on the observation date for that quarter. Otherwise, no interest will be paid that quarter. The barrier price will be 80% of the initial share price.
The notes will be called at par plus the contingent coupon if Weatherford shares close at or above the initial share price on any quarterly observation date.
If the notes are not called and Weatherford shares finish at or above the barrier price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be fully exposed to the decline in the share price.
UBS Investment Bank is the underwriter with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Phoenix autocallable notes
|
| Underlying stock: | Weatherford International Ltd. (Symbol: WFT)
|
| Amount: | $835,000
|
| Maturity: | April 8, 2015
|
| Coupon: | 13.8% per year, payable each quarter if Weatherford shares close at or above barrier price on observation date for that quarter; otherwise, no interest will be paid that quarter
|
| Price: | Par of $1,000
|
| Payout at maturity: | If Weatherford shares finish at or above barrier price, par plus contingent coupon; otherwise, full exposure to decline in share price
|
| Call: | At par plus contingent coupon if Weatherford shares close at or above initial share price on any quarterly observation date
|
| Initial share price: | $16.78
|
| Barrier price: | $13.42, 80% of initial price
|
| Pricing date: | March 21
|
| Settlement date: | March 26
|
| Underwriter: | UBS Investment Bank
|
| Placement agents: | JPMorgan Chase Bank, NA, J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 90270KBK4
|
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