Market Overview

UBS Commences Exchange Offers for Eight ETRACS ETNs

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UBS AG announced today that it has commenced exchange offers ("Exchange Offers") for eight ETRACS Series A ETNs (collectively, the "Series A ETNs") for corresponding ETRACS Series B ETNs (collectively, the "Series B ETNs"), as set forth in Table-1 below. The full schedule of exchange dates and exchange offer settlement dates is listed in Table-2 below.

UBS AG is offering holders of the Series A ETNs the ability to voluntarily exchange their Series A ETNs on a one-for-one basis for the corresponding Series B ETNs, which are intended to be economically identical. Each of the Series A and Series B ETNs subject to the Exchange Offers are currently listed on NYSE Arca.

Table-1

ETRACS Series A ETN

(Ticker | Name)

ETRACS Series B ETN

(Ticker | Name)

AMU

ETRACS Alerian MLP Index ETN due July 18, 2042

AMUB

ETRACS Alerian MLP Index ETN, Series B due July 18, 2042

BDCL

2x Leveraged Long ETRACS Linked to the Wells Fargo Business Development Company Index due May 24, 2041

LBDC

2x Leveraged Long ETRACS Wells Fargo Business Development Company Index ETN Series B due May 24, 2041

BDCS

ETRACS Linked to the Wells Fargo Business Development Company Index due April 26, 2041

BDCZ

ETRACS Wells Fargo Business Development Company Index ETN Series B due April 26, 2041

CEFL

ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN due December 10, 2043

CEFZ

ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN Series B due December 10, 2043

DJCI

ETRACS Linked to the Bloomberg Commodity Index Total Return due October 31, 2039

DJCB

ETRACS Bloomberg Commodity Index Total Return ETN Series B due October 31, 2039

MLPI

ETRACS Linked to the Alerian MLP Infrastructure Index due April 2, 2040

MLPB

ETRACS Alerian MLP Infrastructure Index ETN Series B due April 2, 2040

MORL

ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN due October 16, 2042

MRRL

ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN Series B due October 16, 2042

UCI

ETRACS linked to the UBS Bloomberg Constant Maturity Commodity Index (CMCI) Total Return due April 5, 2038

UCIB

ETRACS UBS Bloomberg Constant Maturity Commodity Index (CMCI) Total Return ETN Series B due April 5, 2038

Table-2

Exchange Period (as defined in UBS

AG's Prospectus referred to below)

Exchange Period

Begins[1]

Exchange Period Ends

(the "Exchange Date")[2]

Settlement Date

First Exchange Period

12/9/2019

1/15/2020

1/17/2020

Second Exchange Period

1/15/2020

1/30/2020

2/3/2020

Third Exchange Period

1/30/2020

2/13/2020

2/18/2020

Fourth Exchange Period

2/13/2020

3/3/2020

3/5/2020

Fifth Exchange Period

3/3/2020

3/17/2020

3/19/2020

Sixth Exchange Period

3/17/2020

3/31/2020

4/2/2020

Seventh Exchange Period

3/31/2020

4/16/2020

4/20/2020

Final Exchange Period

4/16/2020

5/1/2020

5/5/2020

[1] Exchange Periods begin at 5:00 p.m. (New York City time) on each date set forth in the table below (other than the First Exchange Period which shall begin at 2:00 p.m. (New York City time)).

[2] Exchange Periods end at 4:59 p.m. (New York City time) on each date set forth in the table below.

Each Series B ETN offered in the Exchange Offers is intended to provide the same economic exposure as the corresponding Series A ETN, including identical underlying indices, daily Closing Indicative Values (CIV), investor fees, coupon amounts (if applicable) and payment formulas, in each case as set forth in the Prospectus and applicable annex related to the Exchange Offers, dated December 9, 2019 (the "Prospectus"). The key difference between the Series A ETNs and the Series B ETNs is that UBS AG and UBS Switzerland AG are each co-obligors on all Series A ETNs, while UBS AG is the sole issuer and obligor on all Series B ETNs. UBS Switzerland AG has no obligations with respect to the Series B ETNs.

UBS AG is conducting the Exchange Offers in order to reduce the intercompany exposures of UBS Switzerland AG to UBS AG in line with regulatory recovery and resolution guidance.

UBS AG has a contractual right to redeem all Series A ETNs and, within a few months after the final expiration date of the Exchange Offers, UBS AG intends to exercise its contractual call right for any non-tendered Series A ETNs that were subject to the Exchange Offers. Following the completion of such redemptions, no Series A ETNs are expected to remain outstanding.

UBS has been advised by its tax counsel that holders that exchange their Series A ETNs for Series B ETNs should not recognize a gain or loss for U.S. federal income tax purposes as a result of the exchange. Holders should review the tax discussion set forth under the heading "Material Federal U.S. Income Tax Considerations" in the Prospectus related to the Exchange Offers, dated December 9, 2019. UBS is not providing tax advice to holders of Series A ETNs that participate in the exchange and such holders should consult with their tax advisors regarding the tax treatment of the exchange.

For more information on the ETNs included in the Exchange Offers, please see the Prospectus related to the Exchange Offers, dated December 9, 2019.

Table-3 below includes the CUSIPs for each ETN involved in the Exchange Offers.

Table-3

ETRACS Series A ETN

(Ticker | CUSIP)

ETRACS Series B ETN

(Ticker | CUSIP)

AMU

90267B682

AMUB

90274D374

BDCL

90267B765

LBDC

90274D424

BDCS

902641588

BDCZ

90274D416

CEFL

90270L842

CEFZ

90269A468

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