Published on 4/1/2013 in the Prospect News Structured Products Daily.
New Issue: UBS prices $4.72 million contingent income autocallables linked to Goldman, Wells Fargo
By Toni Weeks
San Luis Obispo, Calif., April 1 - UBS AG, London Branch priced $4.72 million of contingent income autocallable securities due March 31, 2016 linked to the common stocks of Goldman Sachs Group, Inc. and Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
If both Goldman Sachs and Wells Fargo shares close at or above their downside threshold levels - 75% of the respective initial share prices - on a quarterly determination date, investors will receive a contingent payment of $0.2625 for each $10.00 note. Otherwise, no contingent payment will be made for that quarter. The contingent payment is equivalent to 10.5% per year.
If the closing share price of each underlying stock is greater than or equal to its initial share price on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment.
If the notes are not called and the final share price of each underlying stock is greater than or equal to its downside threshold level, the payout at maturity will be par plus the contingent payment. If the final price of either stock is less than its downside threshold level, the payout will be a number of shares of the worst-performing stock equal to $10.00 divided by the initial share price or, at the issuer's option, an amount in cash equal to the value of those shares.
UBS Securities LLC is the agent. Distribution is through Morgan Stanley Smith Barney LLC.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying stocks: | Goldman Sachs Group, Inc. (Symbol: GS), Wells Fargo & Co. (Symbol: WFC)
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| Amount: | $4,721,920
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| Maturity: | March 31, 2016
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| Contingent payment: | If both stocks close at or above respective downside threshold on quarterly determination date, $0.2625 per note; otherwise, no contingent payment for that period
|
| Price: | Par of $10.00
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| Payout at maturity: | If final share price of each stock is greater than or equal to downside threshold, par plus $0.2625; if final share price of either stock is less than downside threshold, shares of worst-performing stock equal to $10 divided by initial share price or, at issuer's option, cash value of those shares
|
| Call: | Automatically at par plus $0.2625 if closing share price of each stock is greater than or equal to its initial level on any of first 11 quarterly determination dates
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| Initial share prices: | $147.15 for Goldman Sachs, $36.99 for Wells Fargo
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| Downside threshold: | $110.36 for Goldman Sachs, $27.74 for Wells Fargo, 75% of initial share prices
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| Pricing date: | March 28
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| Settlement date: | April 3
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| Agent: | UBS Securities LLC
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| Distribution: | Morgan Stanley Smith Barney LLC
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| Fees: | 2.25%
|
| Cusip: | 90271B777
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