UBS AG announced today that it will redeem all of the
outstanding securities in each of the two series of UBS-issued
exchange traded notes set forth in the following table
(collectively, the “ETNs”). UBS AG expects to deliver redemption
notices with respect to each of the ETNs to holders of the
applicable ETNs with Call Settlement Dates as set forth in the
table below.
Table-1
ETN Ticker
ETN Name and Prospectus
Supplement [1]
CUSIP
Call Settlement Date
FIEE
UBS AG FI Enhanced Europe 50 ETN due
February 12, 2026 [2]
90274D234
06/16/2023
FIHD
UBS AG FI Enhanced Global High Yield ETN
due March 3, 2026 [2]
90274D218
06/16/2023
[1] The table above provides a hyperlink to the relevant
prospectus and supplements thereto for each of the ETNs, which are
identified by their names. Each of the above ETNs are part of the
UBS AG’s Medium Term Notes, Series B, on which UBS AG is sole
obligor. Capitalized terms used but not defined in this press
release shall have the meanings ascribed to such terms in the
relevant prospectus supplement (including, as applicable, any
product supplement and pricing supplement (each such supplement, a
“prospectus supplement”)) for the ETNs.
[2] The prospectus addendum with a link to the updated
base prospectus can be accessed here.
With respect to each of the ETNs, the Call Settlement Amount
payable on the Call Settlement Date will be calculated as specified
in the relevant prospectus supplement. UBS will pay the applicable
Call Settlement Amount to investors holding the ETNs on the
applicable Call Settlement Date. We expect that the last day of
trading for the ETNs will be June 15, 2023.
Additional details regarding the redemption dates and
measurement periods are included in Table-2 below.
Table-2
ETN Ticker
Call Measurement
Period
Call Measurement Period Start
Date
Call Measurement Period End
Date
Call Settlement Date
FIEE
5 Trading Days
06/07/2023*
06/13/2023*
06/16/2023*
FIHD
5 Trading Days
06/07/2023*
06/13/2023*
06/16/2023*
*Subject to adjustment as described in the
applicable prospectus supplement. Because the Tel-Aviv Stock
Exchange is expected to be closed on June 9, 2023 and the
Australian Securities Exchange is expected to be closed on June 12,
2023, the Calculation Agent for FIHD expects that it will
determine, on those dates, that Market Disruption Events have
occurred. Please refer to the applicable prospectus supplement for
further details on Market Disruption Events.
UBS AG had previously announced on January 7, 2022 that it would
cap the maximum number of UBS AG FI Enhanced Europe 50 ETNs
outstanding at any time to 80,000 ETNs and FI Enhanced Global High
Yield ETNs outstanding at any time to 130,000 ETNs. At that time,
UBS AG expected that its affiliate, UBS Securities LLC, may
continue to sell the ETNs that UBS AG had previously issued or that
UBS Securities LLC may acquire in the future, subject to the
maximum number of the ETNs outstanding as specified previously. UBS
AG expected that the ETNs would continue to trade on the NYSE Arca
and that its affiliate, UBS Securities LLC, may continue to make
markets in the ETNs. UBS AG currently expects to continue to cap
the maximum number of ETNs until the applicable Call Settlement
Dates.
As disclosed in more detail in the applicable prospectus
supplement(s) for the ETNs, the market value of the ETNs may be
influenced by, among other things, supply and demand for the ETNs.
It is possible that the discontinuance of further issuances of the
ETNs by UBS AG, as described above, may influence the market value
of the ETNs. The suspension of new issuances of the ETNs could
affect the liquidity of the market for the ETNs, potentially
leading to insufficient supply and causing the ETNs 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 ETNs. In addition, on the
applicable redemption date, holders will receive the Call
Settlement Amount as described in each applicable prospectus
supplement but will not receive any premium thereto. Accordingly,
investors who purchase the ETNs at any time prior to the Call
Settlement Date for an amount that is greater than the Call
Settlement Amount (including paying any premium to the indicative
value of the ETNs) will suffer a loss on their investment if they
hold their ETNs until the Call Settlement Date.
If investors elect to redeem any such ETNs, any redemption will
be at the redemption value set forth in the applicable prospectus
supplement(s) and will not include any premium above that value.
Investors should always consult their financial advisors and
compare the intraday indicative value of the ETNs with the ETNs’
then-prevailing market price before purchasing or selling any such
ETNs, especially notes with premium characteristics. The applicable
prospectus supplement(s) for the ETNs can be accessed by clicking
on the name of the ETN identified in the table above as well as on
the SEC's website at sec.gov.
This announcement does not affect the terms of the outstanding
ETNs, including the right of holders to require UBS AG to redeem
their ETNs on the terms and at the redemption price set forth in
the applicable prospectus supplement(s). This news release shall
not constitute an offer to sell or the solicitation of an offer to
buy any securities nor will there be any sale of these ETNs in any
state or other jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state or other jurisdiction.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains statements that constitute
“forward-looking statements” that are subject to risks and
uncertainties, and actual results may differ materially. These
statements could contain words such as “possible,” “intend,”
“will,” “may,” “intends,” “would,” “if,” “expect,” “potentially” or
other similar expressions. Forward-looking statements, including
those relating to UBS AG’s plans for the ETNs, are based on
management’s current expectations and assumptions, and are subject
to inherent uncertainties, risks and changes in circumstances that
are difficult to predict. While these forward-looking statements
represent UBS’s judgments, expectations and objectives concerning
the matters described, a number of risks, uncertainties and other
important factors, including whether UBS AG will actually complete
the redemption of the ETNs, could cause actual developments and
results to differ materially from UBS’s expectations. For a
discussion of the risks and uncertainties that may affect the ETNs
please refer to the "Risk Factors" in the applicable prospectus
supplement(s) relating to the ETNs referenced in Table-1. UBS is
not under any obligation to (and expressly disclaims any obligation
to) update or alter its forward-looking statements, whether as a
result of new information, future events, or otherwise.
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 UBS ETNs. Prior to making an investment in the UBS ETNs,
investors should take into account whether or not the market price
is tracking the intraday indicative value of the UBS 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(s) to understand fully the terms of the ETNs and other
considerations that are important in making a decision about
investing in the ETNs. The applicable offering document for each
ETN may be obtained by clicking on the name of each ETNs 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 convenes the global ecosystem for investing, where people
and ideas are connected and opportunities brought to life, and
provides financial advice and solutions to wealthy, institutional
and corporate clients worldwide, as well as to private clients in
Switzerland. UBS offers investment solutions, products and
impactful thought leadership, is the leading global wealth manager,
provides large-scale and diversified asset management, focused
investment banking capabilities, and personal and corporate banking
services in Switzerland. The firm focuses on businesses that have a
strong competitive position in their target 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(s), 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(s), 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 ETNs referred to herein are not sponsored, endorsed, issued,
sold or promoted by MSCI, and MSCI bears no liability with respect
to any such ETNs or any index on which such ETNs are based. The
respective ETN prospectus supplement(s) 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 B�rse 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 B�rse Group or their licensors, research partners or data
providers and STOXX, Deutsche B�rse 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 material 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 2023. 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.
______________________ 1 Individual investors should instruct
their broker/advisor/custodian to call us or should call together
with their broker/advisor/custodian.
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version on businesswire.com: https://www.businesswire.com/news/home/20230531005297/en/
Media contact Alison Keunen +1 212 713 2296
alison.keunen@ubs.com
Institutional Investor contact1 +1-877-387 2275
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