By Angela McDaniels
Tacoma, Wash., July 16 - UBS AG, London Branch priced $1.94 million of trigger phoenix autocallable optimization securities due July 18, 2017 linked to the common stock of International Paper Co., according to a 424B2 filing with the Securities and Exchange Commission.
If International Paper stock closes at or above the trigger price - 60% of the initial share price - on a monthly observation date, the issuer will pay a contingent coupon for that month at the rate of 10.35% per year. Otherwise, no coupon will be paid that month.
Beginning July 12, 2013, if the shares close at or above the initial price on a monthly observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and International Paper shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
Issuer: | UBS AG, London Branch
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Issue: | Trigger phoenix autocallable optimization securities
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Underlying stock: | International Paper Co. (Symbol: IP)
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Amount: | $1,935,500
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Maturity: | July 18, 2017
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Coupon: | 10.35% per year, payable monthly if stock closes at or above trigger price on observation date for that month
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Price: | Par of $10.00
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Payout at maturity: | Par plus contingent coupon if International Paper shares finish at or above trigger price; otherwise, par plus stock return
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Call: | Automatically at par plus contingent coupon if International Paper shares close at or above initial price on a monthly observation date from July 12, 2013 onward
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Initial share price: | $30.05
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Trigger price: | $18.03, 60% of initial share price
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Pricing date: | July 12
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Settlement date: | July 17
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Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
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Fees: | 2.5%
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Cusip: | 90268U697
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