By Angela McDaniels
Tacoma, Wash., April 28 - UBS AG, Jersey Branch priced $10 million of exchange-traded access securities due April 26, 2041 linked to the Wells Fargo Business Development Company index, according to a 424B2 filing with the Securities and Exchange Commission.
Of that amount, $4.47 million will be sold to the public at 101% of par.
The company plans to sell up to $100 million of the securities. The remaining $90 million will be sold from time to time at varying prices.
The notes pay a quarterly coupon equal to the sum of the cash distributions that a hypothetical holder of the index constituents would have received during the quarter minus an accrued tracking fee of 0.85% per year.
The payout at maturity will be par of $25 plus the index return, which could be positive or negative, plus the final coupon amount minus the accrued tracking fee.
The notes are putable, subject to a minimum of 50,000 and a redemption fee of 0.125%. They are callable beginning April 30, 2012.
The notes began trading Thursday on NYSE Arca under the symbol "BDCS."
The index is meant to measure the performance of all business development companies listed on the New York Stock Exchange or Nasdaq and that satisfy specified market capitalization and other eligibility requirements. It currently includes 26 business development companies, which are public vehicles that invest in private equity and debt and were created to increase financing available to small businesses
These are the first exchange-traded notes focused solely on business development companies, according to a news release from UBS.
UBS Investment Bank is the agent.
| Issuer: | UBS AG, Jersey Branch
|
| Issue: | Exchange-traded access securities
|
| Underlying index: | Wells Fargo Business Development Company index
|
| Amount: | $10 million
|
| Maturity: | April 26, 2041
|
| Coupon: | Amount equal to cash distributions made by index constituents during quarter minus tracking fee of 0.85% per year; payable quarterly
|
| Face amount: | $25
|
| Payout at maturity: | Par plus index return plus final coupon minus tracking fee
|
| Initial index level: | Average of index's closing levels on the 10 business days beginning April 27
|
| Call option: | From April 30, 2012 onward
|
| Put option: | At any time, subject to minimum of 50,000 notes and 0.125% redemption fee
|
| Pricing date: | April 27
|
| Settlement date: | April 29
|
| Agent: | UBS Investment Bank
|
| Fees: | Varies
|
| Listing: | NYSE Arca: BDCS
|
| Cusip: | 902641588
|
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