Published on 12/1/2016 in the Prospect News Structured Products Daily.
New Issue: UBS sells $14.1 million step down trigger autocallables on Russell, S&P
By Marisa Wong
Morgantown, W.Va., Dec. 1 – UBS AG, London Branch priced $14.1 million of 0% step down trigger autocallable notes due Nov. 30, 2021 linked to the lesser performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par of $10 plus a call premium of 7.7% per year if each index closes at or above its call threshold level on any annual observation date. For each index, the call threshold level will be equal to the initial index level for every observation date except for the final observation date, Nov. 23, 2021. For the final observation date, the call threshold levels will be 60% of the indexes’ respective initial index levels.
If the notes are not subject to an automatic call, then the final level of at least one index will be less than its downside threshold, 60% of its initial level, and investors will be exposed to the decline of the lesser-performing index from its initial level.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Step down trigger autocallable notes
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| Underlying indexes: | Russell 2000 index and S&P 500 index
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| Amount: | $14,100,190
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| Maturity: | Nov. 30, 2021
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If the notes are not subject to an automatic call, then the final level of at least one index will be less than its downside threshold, 60% of its initial level, and investors will be exposed to the decline of the lesser-performing index from its initial level
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| Call: | Automatically at par plus a call premium of 7.7% per year if each index closes at or above its call threshold level on any annual observation date
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| Initial level: | 1,329.828 for Russell, 2,201.72 for S&P
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| Call threshold level: | Initial index level for every observation date except for the final observation date, Nov. 23, 2021; downside threshold for the final observation date
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| Downside threshold: | 797.897 for Russell, 1,321.03 for S&P; 60% of initial level
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| Pricing date: | Nov. 28
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| Settlement date: | Nov. 30
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2.5%
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| Cusip: | 90280M111
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