By Toni Weeks
San Luis Obispo, Calif., Dec. 24 – UBS AG, London Branch priced $5 million of 0% return optimization securities due Dec. 29, 2016 linked to a basket of unequally weighted exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the iShares MSCI EAFE ETF with a 15% weight, iShares MSCI Emerging Markets ETF with a 15% weight and SPDR S&P 500 ETF Trust with a 70% weight.
If the basket return is positive, the payout at maturity will be par plus 300% of the gain, up to a maximum return of 22.6%. Investors will be fully exposed to any decline in the basket.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Return optimization securities
|
| Underlying funds: | iShares MSCI EAFE ETF (15% weight), iShares MSCI Emerging Markets ETF (15% weight) and SPDR S&P 500 ETF Trust (70% weight)
|
| Amount: | $5 million
|
| Maturity: | Dec. 29, 2016
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If basket return is positive, par plus 3 times basket return, capped at 22.6; full exposure to any losses
|
| Initial share prices: | $62.00 for iShares MSCI EAFE, $39.38 for iShares MSCI EM and $207.47 for SPDR S&P 500
|
| Initial basket level: | 100
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| Pricing date: | Dec. 22
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| Settlement date: | Dec. 26
|
| Agents: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 2%
|
| Cusip: | 90274F429
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