UBS begins exchange offer for eight series of ETracs ETNs

By Angela McDaniels

Tacoma, Wash., Dec. 9 – UBS AG began an exchange offer for eight series of its exchange-traded access securities, according to a 424B3 filing with the Securities and Exchange Commission.

The notes eligible for exchange are part of a series of UBS AG debt securities titled “medium-term notes, series A” co-obligated by UBS AG and UBS Switzerland AG. In exchange, holders are being offered corresponding ETNs that are part of a series of UBS AG debt securities entitled “medium-term notes, series B” issued by UBS AG as sole obligor.

The company said the economic terms of each series B ETN issued in exchange for a series A ETN are intended to be identical, except UBS Switzerland is a co-obligor of the series A ETNs but is not a co-obligor of the series B ETNs.

The $25-par notes are being offered for exchange on a one-for-one basis.

The offer will expire at 5 p.m. ET on May 1, 2020.

In exchange for its

• 17.9 million ETracs Alerian MLP index ETNs due July 18, 2042 (NYSE Arca: AMU), the company is offering ETracs Alerian MLP Index ETNs, series B, due July 18, 2042 (NYSE Arca: AMUB);

• 13.1 million 2xLeveraged Long ETracs due May 24, 2041 linked to the Wells Fargo Business Development Company index (NYSE Arca: BDCL), the company is offering 2xLeveraged Long ETracs Wells Fargo Business Development Company Index ETNs, series B, due May 24, 2041 (NYSE Arca: LBDC);

• 4,355,000 ETracs linked to the Wells Fargo Business Development Company index due April 26, 2041 (NYSE Arca: BDCS), the company is offering ETracs Wells Fargo Business Development Company Index ETNs, series B, due April 26, 2041 (NYSE Arca: BDCZ);

• 17 million ETracs Monthly Pay 2xLeveraged Closed-End Fund ETNs due Dec. 10, 2043 (NYSE Arca: CEFL), the company is offering ETracs Monthly Pay 2xLeveraged Closed-End Fund ETNs, series B, due Dec. 10, 2043 (NYSE Arca: CEFZ);

• 2,938,680 ETracs linked to the Bloomberg Commodity Index Total Return due Oct. 31, 2039 (NYSE Arca: DJCI), the company is offering ETracs Bloomberg Commodity Index Total Return ETNs, series B, due Oct. 31, 2039 (NYSE Arca: DJCB);

• 46.85 million ETracs linked to the Alerian MLP Infrastructure index due April 2, 2040 (NYSE Arca: MLPI), the company is offering ETracs Alerian MLP Infrastructure Index ETNs, series B, due April 2, 2040 (NYSE Arca: MLPB);

• 30.24 million ETracs Monthly Pay 2xLeveraged Mortgage REIT ETNs due Oct. 16, 2042 (NYSE Arca: MORL), the company is offering ETracs Monthly Pay 2xLeveraged Mortgage REIT ETNs, series B, due Oct. 16, 2042 (NYSE Arca: MRRL); and

• 4,728,590 ETracs linked to the UBS Bloomberg Constant Maturity Commodity Index Total Return due April 5, 2038 (NYSE Arca: UCI), the company is offering ETracs UBS Bloomberg Constant Maturity Commodity Index Total Return ETNs, series B, due April 5, 2038 (NYSE Arca: UCIB).

The company plans to settle each exchange on or about the second business day following the date the notes were tendered.

UBS Securities LLC (877 387-2275 or etracs@ubs.com) is the dealer manager for the exchange offers. D.F. King & Co., Inc. (212 269-5550, 800 591-8269 or ubs@dfking.com) is acting as the exchange agent and information agent.

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