Published on 5/29/2015 in the Prospect News Structured Products Daily.
New Issue: UBS prices $6.17 million trigger phoenix autocallables tied to EM index, S&P 500
By Toni Weeks
San Luis Obispo, Calif., May 29 – UBS AG, London Branch priced $6.17 million of trigger phoenix autocallable optimization securities due May 30, 2025 linked to the worst performing of the MSCI Emerging Markets index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.35% if each index closes at or above its 70% coupon barrier on an observation date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial price on any quarterly observation date after one year.
If the notes are not called and each index finishes at or above its coupon barrier level, the payout at maturity will be par plus the coupon. If either index finishes below the barrier level and both indexes finish at or above the trigger level, the payout will be par. Otherwise, investors will be fully exposed to the decline of the worst-performing index.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying indexes: | MSCI Emerging Markets and Russell 2000
|
| Amount: | $6,116,500
|
| Maturity: | May 30, 2025
|
| Coupon: | 8.35% per year, payable quarterly if each index closes at or above its barrier level on quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above trigger level, par plus coupon, if any; otherwise, full exposure to decline of worst-performing index
|
| Call: | At par plus contingent coupon if each index closes at or above its initial level on any quarterly observation date after one year
|
| Initial levels: | 1,019.09 for EM, 1,254.357 for Russell
|
| Barrier levels: | 713.36 for EM, 878.05 for Russell, 70% of initial levels
|
| Trigger levels: | 509.55 for EM, 627.179 for Russell, 50% of initial levels
|
| Pricing date: | May 27
|
| Settlement date: | May 29
|
| Agents: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 3.5%
|
| Cusip: | 90274T502
|
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