UBS AG announced today that it will not issue any new notes in
three of its outstanding custom ETNs (the “Custom ETNs”), which are
listed in Table-1 below. In addition, UBS AG will cap the maximum
number of each Custom ETN that could be outstanding at any time to
the number of Custom ETNs outstanding as of December 31, 2021 as
set forth in the last column of Table-1 below. UBS AG expects that
its affiliate UBS Securities LLC may continue to sell the Custom
ETNs that UBS AG has previously issued or that UBS Securities LLC
may acquire in the future, subject to the maximum number of each
Custom ETN outstanding as specified in the last column of Table-1
below. UBS AG expects that these Custom ETNs will continue to trade
on the NYSE Arca and that its affiliate UBS Securities LLC may
continue to make markets in these Custom ETNs.
In addition, UBS AG highlights that the Custom ETNs reference
the London interbank offered rate (British Banker’s Association)
for three-month deposits in U.S. Dollars (three-month U.S. Dollar
LIBOR rate) in the calculation of “Accrued Financing Charges” as
used to calculate the Redemption Amount, the Acceleration Amount,
the Call Settlement Amount or the payment at maturity, in each case
as defined and described in the applicable prospectus supplement
for the Custom ETN. In the event that the three-month U.S. Dollar
LIBOR rate calculation is discontinued or is no longer
representative of the underlying market or economic reality, UBS AG
currently expects to exercise its call right and fully redeem the
Custom ETNs.
This announcement does not affect the terms of the outstanding
Custom ETNs identified below, including the right of noteholders to
require UBS AG to redeem their notes on the terms, and at the
redemption price, set forth in the applicable prospectus supplement
and the right of UBS AG to call the notes at the prices and under
the circumstances set forth in the applicable prospectus
supplement.
Table-1
ETN Ticker
ETN Name and Prospectus
Supplement [1]
CUSIP
Outstanding ETNs[2]
FBGX
FI Enhanced Large Cap Growth ETN [3]
902677780
245,000
FIEE
FI Enhanced Europe 50 ETN [4]
90274D234
80,000
FIHD
FI Enhanced Global High Yield ETN [4]
90274D218
130,000
[1] The table above provides a hyperlink to the relevant
prospectus and supplements thereto for each of the Custom ETNs,
which are identified by their names. Capitalized terms used but not
defined in this press release shall have the meanings ascribed to
such terms in the relevant prospectus supplement for the Custom
ETNs.
[2] The aggregate number of outstanding securities for
each Custom ETN as of December 31, 2021. Of the Outstanding ETNs,
UBS AG holds 39,184 FBGX ETNs, 36, 842 FIEE ETNs and 45, 388 FIHD
ETNs in inventory as of the date hereof.
[3] FBGX ETN is part of UBS AG’s Medium Term Notes,
Series A, on which UBS AG and UBS Switzerland AG are co-obligors.
Prospectus addendum for the FBGX ETN with a link to the updated
base prospectus can be accessed here.
[4] FIEE and FIHD ETNs are part of UBS AG’s Medium Term
Notes, Series B, on which UBS AG is the sole obligor. Prospectus
addendum for the FIEE ETN with a link to the updated base
prospectus can be accessed here, and for the FIHD ETN can be
accessed here.
As disclosed in more detail in the applicable prospectus
supplement for each of the Custom ETNs, the market value of the
notes may be influenced by, among other things, supply and demand
for the notes. It is possible that the discontinuance of further
issuances of these notes by UBS AG, as described above, may
influence the market value of the Custom ETNs. The suspension of
new issuances of these notes could affect the liquidity of the
market for the notes, potentially leading to insufficient supply
and causing the notes to trade at a premium above their closing or
intraday indicative value. Any such premium may subsequently
decrease at any time and for any reason without warning, resulting
in financial loss to sellers who paid this premium when they
acquired their notes. In addition, if investors elect to redeem
their Custom ETNs, any redemption will be at the redemption value
set forth in the applicable prospectus supplement and will not
include any premium above that value. Investors should always
consult their financial advisors and compare the intraday
indicative value of the notes with the notes‘ then-prevailing
market price before purchasing or selling these Custom ETNs,
especially notes with premium characteristics. The applicable
prospectus supplement for each Custom ETN identified above can be
accessed by clicking on the name of each Custom ETN identified in
the table above as well as on the SEC's website at www.sec.gov.
About UBS ETNs
UBS ETNs are senior unsecured notes issued by UBS AG, are traded
on NYSE Arca, and can be bought and sold through a broker or
financial advisor. An investment in UBS ETNs is subject to a
number of risks, including the risk of loss of some or all of the
investor’s principal, and is subject to the creditworthiness of UBS
AG. Investors are not guaranteed any coupon or distribution amount
under the ETNs. We urge you to read the more detailed explanation
of risks described under “Risk Factors” in the applicable
prospectus supplement for the UBS ETN.
UBS AG has filed a registration statement (including a
prospectus and supplements thereto) with the Securities and
Exchange Commission, or SEC, for the offerings of securities to
which this communication relates. Before you invest, you should
read the prospectus, along with the applicable prospectus
supplement to understand fully the terms of the securities and
other considerations that are important in making a decision about
investing in the UBS ETNs. The applicable offering document for
each UBS ETN may be obtained by clicking on the name of each UBS
ETN identified above. You may also get these documents without cost
by visiting EDGAR on the SEC website at www.sec.gov. The securities
related to the offerings are not deposit liabilities and are not
insured or guaranteed by the Federal Deposit Insurance Corporation
or any other governmental agency of the United States, Switzerland
or any other jurisdiction.
About UBS
UBS provides financial advice and solutions to wealthy,
institutional and corporate clients worldwide, as well as private
clients in Switzerland. UBS is the largest truly global wealth
manager, and a leading personal and corporate bank in Switzerland,
with a large-scale and diversified global asset manager and a
focused investment bank. The bank focuses on businesses that have a
strong competitive position in their targeted markets, are capital
efficient, and have an attractive long-term structural growth or
profitability outlook.
UBS is present in all major financial centers worldwide. It has
offices in more than 50 regions and locations, with about 30% of
its employees working in the Americas, 30% in Switzerland, 19% in
the rest of Europe, the Middle East and Africa and 21% in Asia
Pacific. UBS Group AG employs more than 72,000 people around the
world. Its shares are listed on the SIX Swiss Exchange and the New
York Stock Exchange (NYSE).
This material is issued by UBS AG and/or any of its subsidiaries
and/or any of its affiliates ("UBS"). Products and services
mentioned in this material may not be available for residents of
certain jurisdictions. Past performance is not necessarily
indicative of future results. Please consult the restrictions
relating to the product or service in question for further
information. Activities with respect to US securities are conducted
through UBS Securities LLC, a US broker/dealer. Member of SIPC
(http://www.sipc.org/).
UBS ETNs are sold only in conjunction with the relevant offering
materials. UBS has filed a registration statement (including a
prospectus, as supplemented by the applicable prospectus
supplement, for the offering of the UBS ETNs) with the Securities
and Exchange Commission (the “SEC”) for the offering to which this
communication relates. Before you invest, you should read these
documents and any other documents that UBS has filed with the SEC
for more complete information about UBS and the offering to which
this communication relates. You may get these documents for free by
visiting EDGAR on the SEC website at www.sec.gov. Alternatively,
you can request the prospectus and applicable prospectus
supplement, by calling toll-free (+1-877-387 2275). In the US,
securities underwriting, trading and brokerage activities and
M&A advisor activities are provided by UBS Securities LLC, a
registered broker/dealer that is a wholly owned subsidiary of UBS
AG, a member of the New York Stock Exchange and other principal
exchanges, and a member of SIPC. UBS Financial Services Inc. is a
registered broker/dealer and affiliate of UBS Securities LLC.
The FBGX ETNs (the “ETNs”) have been developed solely by UBS.
The ETNs are not in any way connected to or sponsored, endorsed,
sold or promoted by the London Stock Exchange Group plc and its
group undertakings (collectively, the “LSE Group”). FTSE Russell is
a trading name of certain of the LSE Group companies. All rights in
the FTSE Russell Indices (the “Indices”) vest in the relevant LSE
Group company which owns the Index. “Russell®” and “FTSE Russell®”
are a trademarks of the relevant LSE Group company and are used by
any other LSE Group company under license. The Index is calculated
by or on behalf of FTSE International Limited or its affiliate,
agent or partner. The LSE Group does not accept any liability
whatsoever to any person arising out of (a) the use of, reliance on
or any error in the Index or (b) investment in or operation of the
ETNs. The LSE Group makes no claim, prediction, warranty or
representation either as to the results to be obtained from the
ETNs or the suitability of the Index for the purpose to which it is
being put by UBS.
The securities referred to herein are not sponsored, endorsed,
issued, sold or promoted by MSCI, and MSCI bears no liability with
respect to any such securities or any index on which such
securities are based. The respective ETN prospectus contains a more
detailed description of the limited relationship MSCI has with
UBS.
The STOXX Europe 50 GR USD index is the intellectual property
(including registered trademarks) of STOXX Limited, Zurich,
Switzerland (“STOXX”), Deutsche Borse Group or their licensors,
which is used under license. FIEE ETN is neither sponsored nor
promoted, distributed or in any other manner supported by STOXX,
Deutsche Borse Group or their licensors, research partners or data
providers and STOXX, Deutsche Borse Group or their licensors,
research partners or data providers do not give any warranty, and
exclude any liability (whether in negligence or otherwise) with
respect thereto generally or specifically in relation to any
errors, omissions or interruptions in the STOXX Europe 50 GR USD
index or its data.
UBS specifically prohibits the redistribution or reproduction of
this communication in whole or in part without the prior written
permission of UBS and UBS accepts no liability whatsoever for the
actions of third parties in this respect.
© UBS 2022. The key symbol, UBS and ETRACS are among the
registered and unregistered trademarks of UBS. Other marks may be
trademarks of their respective owners. All rights reserved.
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broker/advisor/custodian to call us or should call together with
their broker/advisor/custodian.
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Media contact Christina Aquilina 1-212-713-4488
christina.aquilina@ubs.com
Institutional Investor contact1 +1-877-387 2275
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