UBS AG announced today that it will redeem all of the
outstanding securities in each of the series set forth in the
following table (collectively, the “Securities”). UBS expects to
deliver redemption notices with respect to each of the Securities
to holders of the applicable Securities with Call Settlement Dates
as set forth in the table below.
Table-1
ETN Ticker
ETN Name and Prospectus
Supplement*
CUSIP
Call Settlement Date
BDCY
ETRACS 2xMonthly Leveraged Wells Fargo®
Diversified Business Development Company Index ETN Series B* due
October 21, 2049
90269A112
12/10/2020
LMLB
ETRACS Monthly Pay 2xLeveragedWells Fargo
MLP Ex-Energy ETN Series B due October 21, 2049
90269A476
12/10/2020
* The table above provides a hyperlink to the relevant
prospectus supplement for each of the Securities, which are
identified by their names. Each of the above Securities are part of
UBS AG’s Medium Term Notes, Series B, on which UBS AG is the 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 for the Securities.
With respect to each of the Securities, 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
Securities on the applicable Call Settlement Date.
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
BDCY
1 business day
12/7/2020
12/7/2020
12/10/2020
LMLB
1 business day
12/7/2020
12/7/2020
12/10/2020
Suspension of Future Sales
UBS AG announced today that it has also suspended further sales
from inventory of each series of the Securities listed in Table-1
above (Tickers: BDCY and LMLB). UBS AG has also announced the
waiver of the minimum early redemption size for each series of the
Securities. Prior to the waiver, holders of the ETNs were required
to redeem at least 50,000 ETNs at one time in order to exercise
their right to redeem the Securities directly with the Issuer.
As disclosed in more detail in the prospectus supplements for
each series of the Securities, the market value of the Securities
may be influenced by, among other things, supply and demand for the
Securities. There is a substantial possibility that the suspension
of any further sales of these Securities by UBS AG, as described
above, may influence the market value of the Securities and the
liquidity of the market for the Securities, potentially leading to
insufficient supply and causing the Securities 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 investors who paid
this premium when they acquired their Securities. 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 Securities 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 Securities) will suffer a loss on their investment if
they hold their Securities until the Call Settlement Date.
If investors elect to redeem their Securities prior to the Call
Settlement Date, 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
Securities with the Securities’ then-prevailing market price before
purchasing or selling the Securities, especially Securities with
premium characteristics.
This announcement does not affect the terms of the outstanding
Securities, including the right of holders to require UBS AG to
redeem their Securities on the terms and at the redemption price
set forth in the applicable prospectus supplement. 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 securities 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.
UBS has also filed a Registration Statement on Form F-3
(Registration No. 333-225551) including a prospectus and
supplements thereto with the Securities and Exchange Commission
(“SEC”) for the general offering of the Securities and other
exchange-traded securities. Before you invest, you should read the
prospectus, along with the applicable prospectus supplements to
understand fully the terms of the securities and other
considerations that are important in making a decision about
investing in the Securities. For more information regarding the
Securities, the prospectus supplement for each of the Securities
can be accessed on EDGAR, the SEC’s website, at www.sec.gov, and
the prospectus supplements are also available at the links included
in Table-1 above.
CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS
Information set forth in this news release contains
forward-looking statements that are subject to risks and
uncertainties, and actual results may differ materially. A
discussion of factors that may affect future results is contained
in UBS AG’s filings with the Securities and Exchange Commission and
in the Registration Statement related to the Securities and there
is no assurance that UBS AG will actually complete the redemptions
of the Securities. UBS disclaims any obligation to update or revise
statements contained in this news release based on new information
or otherwise.
About ETRACS
ETRACS 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 ETRACS 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. Prior to making an investment in the ETRACS ETNs,
investors should take into account whether or not the market price
is tracking the intraday indicative value of the ETNs. We urge you
to read the more detailed explanation of risks described under
“Risk Factors” in the applicable prospectus supplement, or product
supplement and pricing supplement, for the ETRACS ETN.
About UBS
UBS provides financial advice and solutions to wealthy,
institutional and corporate clients worldwide, as well as private
clients in Switzerland. UBS's strategy is centered on our leading
global wealth management business and our premier universal bank in
Switzerland, enhanced by Asset Management and the 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 31% of
its employees working in the Americas, 32% in Switzerland, 19% in
the rest of Europe, the Middle East and Africa and 18% in Asia
Pacific. UBS Group AG employs over 67,000 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/).
Wells Fargo Securities, Wells Fargo, Wells Fargo Diversified
Business Development Company Index and the Wells Fargo MLP
Ex-Energy Index are trademarks of Wells Fargo & Company and
have been licensed for use for certain purposes by UBS. The ETRACS
Exchange Traded Notes traded under the tickers BDCY and LMLB are
based on indices maintained by Wells Fargo Securities, LLC and are
not issued, sponsored, endorsed or advised by Wells Fargo
Securities, LLC, Wells Fargo & Company or their affiliates
(“Wells”) and Wells makes no representation regarding whether such
Products are suitable for investors generally or the advisability
of trading in such Products. Wells does not guarantee that the
Indices referenced by the Products have been accurately calculated
or that the Indices appropriately represent particular investment
strategies. Wells shall not have any liability for any error in the
calculation of the Indices or for any infirmity in the Products.
The Indices are calculated by third parties, including NYSE Arca,
Inc., which are not affiliated with the issuer of the Products or
with Wells and they do not approve, endorse, review or recommend
the Indices, UBS or the Products.
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 2020. 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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Media contact Christina Aquilina +1 212 713 4488
Christina.aquilina@ubs.com
Institutional Investor contact1 +1-877-387 2275
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broker/advisor/custodian to call us or should call together with
their broker/advisor/custodian.
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