 | July 2016
Pricing Sheet Dated July 12, 2016 relating to Pricing Supplement Dated June 22, 2016 Filed Pursuant to Rule 424(b)(3) Registration Statement No. 333-204908 (To Prospectus dated April 29, 2016, Index Supplement dated April 29, 2016 and Product Supplement dated May 2, 2016) |
STRUCTURED INVESTMENTS
Opportunities in International Equities
Performance Leveraged Upside SecuritiesSM (PLUS) with Lookback Entry due September 27, 2017
$2,929,000 Based on the Value of the EURO STOXX® Banks Index
Principal at Risk Securities
| SUMMARY TERMS |
| Issuer: | UBS AG, London Branch (“UBS”) | |||||
| Underlying index: | EURO STOXX® Banks Index (Bloomberg Ticker: “SX7E”) | |||||
| Aggregate principal amount: | $2,929,000 | |||||
| Stated principal amount: | $10 per PLUS | |||||
| Issue price: | $10 per PLUS (see “Commissions and issue price” below), offered at a minimum investment of 100 PLUS (representing a $1,000 investment) | |||||
| Denominations: | $10 per PLUS and integral multiples thereof | |||||
| Interest: | None | |||||
| Pricing date: | June 22, 2016 | |||||
| Original issue date: | June 27, 2016 (3 business days after the pricing date) | |||||
| Valuation date: | September 22, 2017 (approximately 15 months after the pricing date), subject to postponement in the event of a market disruption event, as described in the accompanying product supplement | |||||
| Maturity date: | September 27, 2017 (3 business days after the valuation date), subject to postponement in the event of a market disruption event, as described in the accompanying product supplement | |||||
| Payment at maturity: | § If the underlying return ispositive: The lesser of (a) $10 + Leveraged Upside Payment and (b) Maximum Payment at Maturity In no event will the payment at maturity exceed the maximum payment at maturity.
§ If the underlying return iszero: The stated principal amount of $10
§ If the underlying return isnegative: $10 + ($10 x underlying return) Under these circumstances, you will lose a percentage of your principal amount equal to the underlying return and, in extreme situations, you could lose all of your initial investment. | |||||
| Underlying return: | The quotient, expressed as a percentage, of (i) the final level of the underlying indexminus the initial level of the underlying index,divided by (ii) the initial level of the underlying index. Expressed as a formula: (Final Level – Initial Level) / Initial Level | |||||
| Leveraged upside payment: | $10 x leverage factor x underlying return | |||||
| Maximum Gain: | 20.25% | |||||
| Initial level: | $78.37, which was the closing level of the underlying index on July 6, 2016 and the lowest closing level of the underlying index during the initial observation period, as determined by the calculation agent | |||||
| Initial observation period: | Each trading day on which no market disruption event occurs or is continuing from and including the pricing date to and including July 12, 2016, provided that, if a market disruption event occurs or is continuing on July 12, 2016, the initial observation period may be extended until the earlier of the first subsequent trading day on which no market disruption event occurs or is continuing and the eighth subsequent trading day, as described further in the accompanying product supplement under “General Terms of the Securities — Market Disruption Events”. | |||||
| Final level: | The closing level of the underlying index on the valuation date, as determined by the calculation agent. | |||||
| Leverage factor: | 1.5 | |||||
| Maximum payment at maturity: | $12.025 per PLUS, which is equal to $10 + ($10 × Maximum Gain) | |||||
| CUSIP: | 90275R745 | |||||
| ISIN: | US90275R7456 | |||||
| Listing: | The PLUS will not be listed or displayed on any securities exchange or any electronic communications network. | |||||
| Agent: | UBS Securities LLC | |||||
| Commissions and issue price: | Price to Public(1) | Fees and Commissions(1) | Proceeds to Issuer | |||
| Per PLUS: | $10.00 | $0.175(a) | $9.775 | |||
| + $0.05(b) | ||||||
| $0.225 | ||||||
| Total: | $2,929,000.00 | $65,902.50 | $2,863,097.50 |
| (1) | UBS Securities LLC has agreed to purchase from UBS AG the PLUS at the price to public less a fee of $0.225 per $10.00 stated principal amount of securities. UBS Securities LLC has agreed to resell all of the PLUS to Morgan Stanley Smith Barney LLC (“Morgan Stanley Wealth Management”) at an underwriting discount which reflects: |
| (a) | a fixed sales commission of $0.175 per $10.00 stated principal amount of PLUS that Morgan Stanley Wealth Management sells and |
| (b) | a fixed structuring fee of $0.050 per $10.00 stated principal amount of PLUS that Morgan Stanley Wealth Management sells, each payable to Morgan Stanley Wealth Management. See “Supplemental information concerning plan of distribution (conflicts of interest); secondary markets (if any)”. |
The estimated initial value of the PLUS as of the pricing date is $9.60 for the PLUS based on the value of the EURO STOXX® Banks Index. The estimated initial value of the PLUS was determined as of the close of the relevant markets on the date hereof by reference to UBS’ internal pricing models, inclusive of the internal funding rate. For more information about secondary market offers and the estimated initial value of the PLUS, see “Risk Factors — Fair value considerations” and “Risk Factors — Limited or no secondary market and secondary market price considerations” on pages 12, 13 and 14 in the pricing supplement.
This pricing sheet specifies the initial level of the PLUS and supplements the pricing supplement describing the offering, the related product supplement, index supplement and prospectus. Before you invest, you should read these documents, each of which can be accessed via the hyperlinks below:
| § | Pricing supplement dated June 22, 2016:http://www.sec.gov/Archives/edgar/data/1114446/000119312516631616/d215637d424b2.htm |
| § | Product supplement dated May 2, 2016:http://www.sec.gov/Archives/edgar/data/1114446/000139340116000653/c438540_6901168-424b2.htm |
| § | Index supplement dated April 29, 2016:http://www.sec.gov/Archives/edgar/data/1114446/000119312516569883/d163530d424b2.htm |
| § | Prospectus dated April 29, 2016:http://www.sec.gov/Archives/edgar/data/1114446/000119312516569341/d161008d424b3.htm |
Notice to investors: the PLUS are significantly riskier than conventional debt instruments. The issuer is not necessarily obligated to repay the full stated principal amount of the PLUS at maturity, and the PLUS have the same downside market as that of the underlying index. This market risk is in addition to the credit risk inherent in purchasing a debt obligation of UBS. You should not purchase the PLUS if you do not understand or are not comfortable with the significant risks involved in investing in the PLUS.
You should carefully consider the risks described under ‘‘Risk Factors’’ beginning on page 12 of the pricing supplement and under ‘‘Risk Factors’’ beginning on page PS-17 of the accompanying product supplement before purchasing any PLUS. Events relating to any of those risks, or other risks and uncertainties, could adversely affect the market value of, and the return on, your PLUS. You may lose some or all of your initial investment in the PLUS. The PLUS will not be listed or displayed on any securities exchange or any electronic communications network.
Neither the Securities and Exchange Commission nor any other regulatory body has approved or disapproved of these PLUS or passed upon the adequacy or accuracy of this document, the accompanying product supplement, the accompanying index supplement or the accompanying prospectus. Any representation to the contrary is a criminal offense.
The PLUS are not bank deposits and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency.
“EURO STOXX®” is a service mark of STOXX Limited. STOXX Limited has no relationship to UBS, other than the licensing of the EURO STOXX® Banks Index and its service marks for use in connection with the PLUS.