NEW YORK–(BUSINESS WIRE)–UBS AG today announced that it has suspended further sales from
inventory of its outstanding ETRACS
Monthly Pay 2xLeveraged Small Cap High Dividend ETN (NYSE Arca
Ticker:SMHD). This suspension will remain in effect until further
notice from UBS AG.
As previously announced on October 8, 2015, UBS AG does not intend to
issue any new notes of this ETN, which is part of a series of UBS AG
debt securities designated as “Medium-Term Notes, Series A.” As a
result, following this announcement, UBS does not intend to make further
sales of previously issued but unsold notes of this ETN or notes of this
ETN that UBS Securities LLC may acquire in the future. This ETN will
continue to trade on the NYSE Arca, subject to further notice.
As disclosed in more detail in the applicable pricing and product
supplements, the market value of the notes may be influenced by, among
other things, supply and demand for the notes. It is possible that the
suspension of any further sales of these notes by UBS AG, as described
above, may influence the market value of the notes and the liquidity of
the market for the notes, potentially leading to insufficient supply and
causing the notes 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 notes. In
addition, if investors elect to redeem their ETNs, any redemption will
be at the redemption value set forth in the applicable product
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 notes with the notes’ then-prevailing
market price before purchasing or selling these notes, especially notes
with premium or discount characteristics.
This announcement does not affect the terms of the outstanding ETRACS
Monthly Pay 2xLeveraged Small Cap High Dividend ETNs, including the
right of noteholders to require UBS AG to redeem their notes on the
terms and at the redemption price set forth in the applicable product
supplement and pricing supplement. Additionally, this announcement does
not impact the right of UBS AG to call the notes at the prices and under
the circumstances set forth in the applicable product supplement and
The pricing supplement for SMHD can be accessed by clicking here.
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. 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, as applicable, for the ETRACS 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 applicable prospectus,
pricing or product supplement, dated as of various dates, and the most
recent prospectus to understand fully the terms of the securities and
other considerations that are important in making a decision about
investing in the ETRACS. The applicable offering document for the ETRACS
may be obtained by clicking on the relevant hyperlink identified above
in the text of this press release. You may also get these documents
without cost by visiting EDGAR on the SEC website at www.sec.gov.
Alternatively, you can request the applicable prospectus supplement, or
product supplement and pricing supplement, 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 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.
UBS provides financial advice and solutions to wealthy, institutional
and corporate clients worldwide, as well as private clients in
Switzerland. UBS’ 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 52 countries, with about 34% of its employees working in the
Americas, 34% in Switzerland, 18% in the rest of Europe, the Middle East
and Africa and 14% in Asia Pacific. UBS Group AG employs approximately
61,000 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
ETRACS 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, or
product supplement and pricing supplement, for the offering of the
ETRACS 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.
The financial instrument is not sponsored, promoted, sold or supported
in any other manner by Solactive AG nor does Solactive AG offer any
express or implicit guarantee or assurance either with regard to the
results of using the Index and/or Index trade mark or the Index Price at
any time or in any other respect. The Index is calculated and published
by Solactive AG. Solactive AG uses its best efforts to ensure that the
Index is calculated correctly. Irrespective of its obligations towards
the Issuer, Solactive AG has no obligation to point out errors in the
Index to third parties including but not limited to investors and/or
financial intermediaries of the financial instrument. Neither
publication of the Index by Solactive AG nor the licensing of the Index
or Index trade mark for the purpose of use in connection with the
financial instrument constitutes a recommendation by Solactive AG to
invest capital in said financial instrument nor does it in any way
represent an assurance or opinion of Solactive AG with regard to any
investment in this financial instrument.
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 2018. 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.