UBS seeks consents to amend Etracs on UBS Bloomberg commodity

By Susanna Moon

Chicago, Oct. 16 - UBS AG said it began a consent solicitation to amend its exchange-traded access securities (Etracs) linked to the UBS Bloomberg Constant Maturity Commodity Index Total Return due 2038.

UBS is soliciting consents for the right to redeem all, but not less than all, outstanding securities beginning on April 4, 2013 regardless of the amount outstanding, according to a company press release.

Right now, the issuer may only redeem the notes if the amount outstanding is less than $10 million on the fifth trading day before the settlement date.

If UBS receives the needed consents for the change to the redemption provision of the securities and enters into the supplemental indenture, then UBS will also reduce the fee to 0.55% per year from 0.65% per year.

The company is soliciting consents from holders of record as of 5 p.m. ET on Oct. 15 and needs consents from holders of at least 66 2/3% of the outstanding notes to approve the proposed amendment.

UBS Securities LLC (attn: Etracs, 877-387-2275 or etracs.com) is the solicitor. U.S Bank Trust NA (attn: specialized finance, 800 934-6802) is the tabulation agent.

The Cusip number is 902641778. The notes trade on the NYSE Arca under the ticker symbol "UCI."

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