Published on 7/17/2012 in the Prospect News Structured Products Daily.
New Issue: UBS prices $4.04 million contingent absolute return autocallables linked to oil
By Angela McDaniels
Tacoma, Wash., July 17 - UBS AG, London Branch priced $4.04 million of 0% contingent absolute return autocallable optimization securities due July 18, 2013 linked to Brent crude oil, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus an annualized call premium of 13.8% if the price of oil closes at or above the initial price on any quarterly observation date.
If the notes are not called and the final oil price is greater than or equal to the trigger price, 80% of the initial price, the payout at maturity will be par plus the absolute value of the percentage change in the price. Otherwise, investors will be fully exposed to the price decline.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
Issuer: | UBS AG, London Branch
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Issue: | Contingent absolute return autocallable optimization securities
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Underlying commodity: | Brent crude oil
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Amount: | $4,037,720
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Maturity: | July 18, 2013
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Coupon: | 0%
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Price: | Par of $10.00
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Payout at maturity: | If final oil price is greater than or equal to trigger price, par plus absolute value of percentage change in price; otherwise, full exposure to price decline
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Call: | Automatically at par plus annualized call premium of 13.8% if price of oil closes at or above initial price on Oct. 15, 2012, Jan. 15, 2013, April 15, 2013 or July 15, 2013
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Initial oil price: | $102.40
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Trigger price: | $81.92, 80% of initial price
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Pricing date: | July 13
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Settlement date: | July 18
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Agents: | UBS Financial Services Inc. and UBS Investment Bank
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Fees: | 1.5%
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Cusip: | 90268U622
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