Published on 6/29/2010 in the Prospect News Structured Products Daily.
New Issue: UBS sells $12.53 million autocallable optimization notes on Market Vectors Gold Miners
By Susanna Moon
Chicago, June 29 - UBS AG, London Branch priced $12.53 million of 0% autocallable optimization securities with contingent protection due July 1, 2011 based on the Market Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the shares close at or above the initial share price on any of 12 monthly observation dates, the notes will be automatically called and investors will receive par of $10 plus an annualized call premium of 29.5%.
The observation dates are July 26, Aug. 25, Sept. 24, Oct. 25, Nov. 23, Dec. 27, Jan. 25, 2011, Feb. 22, 2011, March 25, 2011, April 25, 2011, May 24, 2011 and June 27, 2011.
If the notes are not called and the final share price is greater than or equal to 70% of the initial price, the payout at maturity will be par. If the final share price is less than 70% of the initial price, the payout will be par plus the fund return.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Autocallable optimization securities with contingent protection
|
| Underlying ETF: | Market Vectors Gold Miners
|
| Amount: | $12,525,030
|
| Maturity: | July 1, 2011
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par if final share price is greater than or equal to trigger price; otherwise, par plus share price return
|
| Call: | At par plus 22% if shares close at or above initial price on July 26, Aug. 25, Sept. 24, Oct. 25, Nov. 23, Dec. 27, Jan. 25, 2011, Feb. 22, 2011, March 25, 2011, April 25, 2011, May 24, 2011 and June 27, 2011
|
| Initial share price: | $54.06
|
| Trigger price: | $40.55, or 75% of initial price
|
| Pricing date: | June 25
|
| Settlement date: | June 30
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.25%
|
| Cusip: | 90267C474
|
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