UBS Announces Proposal to Redeem 13 ETRACS ETNs in 2020
UBS AG announced today that it expects to exercise its contractual call right to redeem in full 13 ETRACS Series A exchange traded notes, set forth in the following table, within a few months following the final expiration of UBS AG’s proposed exchange offers, which were announced earlier today. These 13 Series A ETNs, as set forth in the Table-1 below, are not included in the proposed exchange offers.
The commencement date and duration of UBS AG’s proposed exchange offers have not yet been determined, but UBS AG expects that the exchange offers will remain open for approximately four months following their commencement. UBS has not made any final decision to redeem these 13 Series A ETNs and may elect not to redeem them. If UBS decides to proceed with the anticipated redemption of these Series A ETNs, UBS will make a further announcement to that effect.
13 ETRACS Series A ETNs not included in the proposed exchange offers
ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN due February 6, 2045
ETRACS Monthly Pay 2xLeveraged Wells Fargo MLP Ex-Energy ETN due June 24, 2044
ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN due September 30, 2044
ETRACS Monthly Pay 2xLeveraged Diversified High Income ETN due November 12, 2043
ETRACS Monthly Pay 2xLeveraged Dow Jones Select Dividend Index ETN due May 22, 2042
ETRACS Linked to the UBS Bloomberg CMCI Food Total Return due April 5, 2038
ETRACS Monthly Reset 2xLeveraged ISE Exclusively Homebuilders ETN due March 13, 2045
ETRACS Monthly Pay 2xLeveraged MSCI US REIT Index ETN due May 5, 2045
ETRACS Linked to the Alerian Natural Gas MLP Index due July 9, 2040
ETRACS Monthly Pay 2xLeveraged S&P Dividend ETN due May 22, 2042
ETRACS Linked to the UBS Bloomberg CMCI Agriculture Total Return due April 5, 2038
ETRACS Linked to the UBS Bloomberg CMCI Gold Total Return due April 5, 2038
ETRACS Linked to the UBS Bloomberg CMCI Silver Total Return due April 5, 2038
Each of the above Series A ETNs are part of UBS AG’s Medium Term Notes, Series A, on which UBS AG and UBS Switzerland AG are co-obligors.
If the above Series A ETNs are redeemed by UBS, holders will receive the applicable redemption amount, calculated in accordance with the applicable prospectus supplement or pricing supplement, on the applicable call settlement date. To the extent any of the Series A ETNs are trading at a premium to their indicative value, investors should exercise extreme caution before purchasing the Series A ETNs at such premium, as UBS expects that any such premium may be reduced either in part or in whole in the event that UBS decides to redeem them.
UBS AG has previously issued the below three Series B ETNs that track the same underlying index as the first three Series A ETNs in Table-1 above (SMHD, LMLP and HDLV), but which have certain differences in payment features (see Table-2). UBS AG is the sole issuer and obligor of these Series B ETNs.
Series B ETNs not included in the exchange offers
(Ticker, Name, CUSIP)
ETRACS 2xMonthly Pay Leveraged US Small Cap High Dividend ETN Series B due November 10, 2048
ETRACS Monthly Pay 2xLeveraged Wells Fargo MLP Ex-Energy ETN Series B due October 21, 2049
ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B due October 21, 2049