UBS plans to price E-Tracs linked to Wells Fargo MLP index

By Angela McDaniels

Tacoma, Wash., Oct. 7 - UBS AG, Jersey Branch plans to price exchange-traded access securities due Oct. 29, 2040 linked to the Wells Fargo Master Limited Partnership index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will have a face amount of $24.51 each and will be sold at 102% of par, or $25.00.

The notes may pay a quarterly coupon. The coupon amount will equal the sum of the cash distributions that a hypothetical holder of index constituents would have been entitled to receive during the relevant interest period, reduced by the accrued tracking fee.

The notes are putable on weekly repurchase dates, subject to a minimum of 50,000 notes and a redemption fee of 0.125%. UBS can call the notes beginning Nov. 3, 2011.

The payout upon redemption or at maturity will be par plus the index return minus the accrued tracking fee.

On any day, the tracking fee is 0.85% per year multiplied by the sum of par plus the index return on the preceding day.

The issuer plans to list the notes on NYSE Arca under the symbol "MLPW."

The index is designed to measure the performance of all master limited partnerships in the energy sector listed on the New York Stock Exchange or Nasdaq that satisfy market capitalization and other eligibility requirements.

The notes (Cusip 902664408) are expected to price Oct. 29 and settle Nov. 3.

UBS Securities LLC is the underwriter with Wells Fargo Securities, LLC as agent.

© 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.