Market Overview

UBS Announces Proposal to Redeem 13 ETRACS ETNs in 2020

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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.

Table-1

 

13 ETRACS Series A ETNs not included in the proposed exchange offers

(Ticker, Name, CUSIP)

 

SMHD

 

ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN due February 6, 2045

 

90274D838

 

LMLP

 

ETRACS Monthly Pay 2xLeveraged Wells Fargo MLP Ex-Energy ETN due June 24, 2044

 

90273A207

 

HDLV

 

ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN due September 30, 2044

 

90270L727

 

DVHL

 

ETRACS Monthly Pay 2xLeveraged Diversified High Income ETN due November 12, 2043

 

90270L859

 

DVYL

 

ETRACS Monthly Pay 2xLeveraged Dow Jones Select Dividend Index ETN due May 22, 2042

 

90268G607

 

FUD

 

ETRACS Linked to the UBS Bloomberg CMCI Food Total Return due April 5, 2038

 

902641737

 

HOML

 

ETRACS Monthly Reset 2xLeveraged ISE Exclusively Homebuilders ETN due March 13, 2045

 

90274P302

 

LRET

 

ETRACS Monthly Pay 2xLeveraged MSCI US REIT Index ETN due May 5, 2045

 

90274R100

 

MLPG

 

ETRACS Linked to the Alerian Natural Gas MLP Index due July 9, 2040

 

902641620

 

SDYL

 

ETRACS Monthly Pay 2xLeveraged S&P Dividend ETN due May 22, 2042

 

90267L409

 

UAG

 

ETRACS Linked to the UBS Bloomberg CMCI Agriculture Total Return due April 5, 2038

 

902641760

 

UBG

 

ETRACS Linked to the UBS Bloomberg CMCI Gold Total Return due April 5, 2038

 

902641810

 

USV

 

ETRACS Linked to the UBS Bloomberg CMCI Silver Total Return due April 5, 2038

 

902641794

 

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.

Table-2

 

Series B ETNs not included in the exchange offers

(Ticker, Name, CUSIP)

 

SMHB

 

ETRACS 2xMonthly Pay Leveraged US Small Cap High Dividend ETN Series B due November 10, 2048

 

90274E166

 

LMLB

 

ETRACS Monthly Pay 2xLeveraged Wells Fargo MLP Ex-Energy ETN Series B due October 21, 2049

 

90269A476

 

HDLB

 

ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B due October 21, 2049

 

90269A484

 

For more information on the 13 ETRACS Series A ETNs above, you can access the applicable prospectus supplement or pricing supplement at the hyperlinks below:

13 ETRACS Series A ETNs

SMHD Pricing Supplement

 

LRET Pricing Supplement

LMLP Pricing Supplement

 

MLPG Prospectus Supplement

HDLV Pricing Supplement

 

SDYL Pricing Supplement

DVHL Prospectus Supplement

 

UAG Prospectus Supplement

DVYL Pricing Supplement

 

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