Chicago, Dec. 27 – UBS AG, London Branch priced an additional $50 million principal amount of 2xMonthly leveraged exchange-traded access securities, series B, due Feb. 12, 2046 linked to the Alerian MLP Infrastructure index, according to a 424B2 filing with the Securities and Exchange Commission.
The company initially sold the series B exchange-traded notes at par of $25 to underwriter UBS Securities LLC.
The ETNs may pay a coupon. The coupon amount will equal the sum of the cash distributions that a hypothetical holder of index constituent securities would have been entitled to receive in respect of the securities during the relevant period, reduced by the accrued tracking fee. Interest, if any, is payable quarterly.
The notes are putable, subject to a minimum of 50,000 notes and a redemption fee of 0.1%, from Feb. 18, 2016 to Feb. 5, 2046. They are callable in whole as of Feb. 13, 2017 through and including the maturity date.
The notes are listed on the NYSE Arca under the symbol “MLPQ.”
Index
The securities provide a return linked to the performance of the Alerian MLP Infrastructure index, a midstream-focused subset of the Alerian MLP index.
The index’s constituents generally earn the majority of their cash flow from the transportation and storage of energy commodities. The index measures the infrastructure component of this emerging asset class and is calculated using a capped, float-adjusted, capitalization-weighted methodology.
Payout
The payout at maturity will be the current principal amount plus 200% of the index return, which could be positive or negative, minus the accrued fees, which are a tracking fee of 0.85% per year and a financing charge of Libor plus 80 basis points, plus the stub reference distribution amount, if any.
The stated principal amount is $25. For each calendar month, the current principal amount is reset to the previous current principal amount plus two times the index return on the monthly valuation date minus accrued fees on the monthly valuation date.
For each month, the monthly valuation date is the last business day of the previous calendar month.
| Issuer: | UBS AG, London Branch
|
| Issue: | Etracs 2xMonthly leveraged ETNs, series B
|
| Underlying index: | Alerian MLP Infrastructure index
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| Amount: | Up to $50 million, reopened (total $150 million)
|
| Maturity: | Feb. 12, 2046
|
| Coupon: | 0%
|
| Face amount: | $25
|
| Indicative value: | $21.57, Dec. 26
|
| Payout at maturity: | Current principal amount plus 200% of index return minus tracking fee of 0.85% per year and accrued financing charge of Libor plus 80 bps plus stub reference distribution amount, if any
|
| Call option: | In whole begun on Feb. 13, 2017
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| Put option: | At any time, subject to minimum of 50,000 notes and 0.1% redemption fee
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| Initial closing level: | 379.33, Dec. 26
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| Pricing date: | Feb. 8
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| Settlement date: | Feb. 11 (for $25 million)
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| Reopening date: | Dec. 11
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| Underwriter: | UBS Securities LLC
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| Listing: | NYSE Arca: MLPQ
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| Cusip: | 90274D259
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