UBS Declares Coupon Payments on 8 ETRACS Exchange Traded Notes
HDLB: linked to the Solactive US High Dividend Low Volatility Index Series B
SMHB: linked to the Solactive US Small Cap High Dividend Index Series B
PFFL: linked to the Solactive Preferred Stock ETF Index
CEFD: linked to the S-Network Composite Closed-End Fund Index
MVRL: linked to the Market Vectors Global Mortgage REITs Index
GLDI: linked to the Credit Suisse Nasdaq Gold FLOWS$(TM)$ 103 Index
SLVO: linked to the Credit Suisse Nasdaq Silver FLOWS(TM) 106 Index
USOI: linked to the Credit Suisse Nasdaq WTI Crude Oil FLOWS(TM) 106 Index
NEW YORK--(BUSINESS WIRE)--June 06, 2024--
UBS Investment Bank today announced coupon payments for 5 ETRACS Exchange Traded Notes traded on the NYSE Arca and expected coupon payments for 3 ETRACS Exchange Traded Notes traded on NASDAQ (together, the "ETNs").
Current
ETN Name and Coupon Yield
NYSE Prospectus Valuation Record Payment Coupon Payment (annualized)
Ticker Supplement(a) Date Ex-Date Date Date Amount Schedule (b)
ETRACS Monthly
Pay
2xLeveraged
US High
Dividend Low
Volatility
HDLB ETN Series B 5/30/2024 6/12/2024 6/12/2024 6/21/2024 $ 0.0504 Monthly 11.16%
ETRACS Monthly
Pay
2xLeveraged
US Small Cap
High Dividend
SMHB ETN Series B 5/30/2024 6/12/2024 6/12/2024 6/21/2024 $ 0.0818 Monthly 24.22%
ETRACS Monthly
Pay 2x
Leveraged
Preferred
PFFL Stock ETN 5/30/2024 6/12/2024 6/12/2024 6/21/2024 $ 0.0929 Monthly 12.35%
ETRACS Monthly
Pay 1.5X
Leveraged
Closed-End
Fund Index
CEFD ETN 5/30/2024 6/12/2024 6/12/2024 6/21/2024 $ 0.1912 Monthly 13.09%
ETRACS Monthly
Pay 1.5x
Leveraged
Mortgage REIT
MVRL ETN 5/30/2024 6/12/2024 6/12/2024 6/21/2024 $ 0.0502 Monthly 18.50%
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(a) The table above provides a hyperlink to the relevant prospectus and supplements thereto for each of our ETRACS ETNs, which are identified by their names. For more information on each ETRACS ETN, see "List of ETNs".
(b) "Current Yield (annualized)" equals the current Coupon Amount and the two immediately preceding Coupon Amounts, multiplied by four (to annualize such coupons), divided by the closing Current Indicative Value of the ETN on its current Coupon Valuation Date rounded to two decimal places for ease of analysis. The Current Yield is not indicative of future coupon payments, if any, on the ETN. You are not guaranteed any coupon or distribution amount under the ETN.
Note: HDLB, SMHB and PFFL pay a variable monthly coupon linked to 2 times the cash distributions, if any, on the respective underlying index constituents, less withholding taxes, if any. CEFD and MVRL pay a variable monthly coupon linked to 1.5 times the cash distributions, if any, on the respective underlying index constituents, less withholding taxes, if any. Variations in the amount of monthly distributions will lead to large variations in the Current Yield as calculated above. As such, the Current Yield is not indicative of future coupon payments, if any, on these ETNs.
Expected
Closing Coupon
ETN Name and Indicative Amount Expected
NASDAQ Pricing Value on Record Payment per Payment Current
Ticker Supplement(c) 5/31/2024 Ex-Date Date Date ETN(d) Schedule Yield(e)
------- -------------- ---------- --------- --------- --------- -------- -------- ----------
ETRACS Gold
Shares
Covered Call
ETNs due
February 2,
GLDI 2033 $148.2034 6/21/2024 6/21/2024 6/26/2024 $1.1768 Monthly 12.55% (f)
------- -------------- ---------- --------- --------- --------- -------- -------- ----------
ETRACS Silver
Shares
Covered Call
ETNs due
April 21,
SLVO 2033 $82.1084 6/21/2024 6/21/2024 6/26/2024 $1.5707 Monthly 21.66% (f)
------- -------------- ---------- --------- --------- --------- -------- -------- ----------
ETRACS Crude
Oil Shares
Covered Call
ETNs due
April 24,
USOI 2037 $71.5573 6/21/2024 6/21/2024 6/26/2024 $0.7902 Monthly 14.98% (f)
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(c) The table above provides a hyperlink to the relevant prospectus and supplements thereto for each of our ETRACS ETNs, which are identified by their names. For more information on each ETRACS ETN, see "List of ETNs".
(d) On May 13, 2024, the Credit Suisse Nasdaq Gold FLOWS(TM) 103 Index, the Credit Suisse Nasdaq Silver FLOWS(TM) 106 Index and the Credit Suisse Nasdaq WTI Crude Oil FLOWS(TM) 106 Index (the "Indices") concluded the notional sale of options on GLD shares, SLV shares and USO shares, respectively, with June 2024 expiration. We expect that the notional cash distribution generated by this sale of options will be withdrawn from the Indices on June 17, 2024, subject to adjustment in the event of any market disruption events. Assuming no redemption or acceleration of GLDI, SLVO and USOI, and that the notional cash distribution is withdrawn from the Indices on June 17, 2024, we expect to declare a Coupon Amount for GLDI, SLVO and USOI, respectively, equal to the corresponding Expected Coupon Amount. The Expected Coupon Amount is subject to change upon the occurrence of a disruption event or other unforeseen circumstances.
(e) For each ETN, the Expected Current Yield equals the Expected Coupon Amount annualized and divided by the Closing Indicative Value, as discussed in more detail below. The Expected Current Yield, which is based on an ETN's Expected Coupon Amount and its two most recent coupon payments, is not indicative of future coupon payments, if any, on the ETNs. In particular, future coupon payments on an ETN may differ significantly from its Expected Current Yield, if its Closing Indicative Value fluctuates widely in a volatile market. You are not guaranteed any coupon payment or distribution under the ETNs. Coupon payments for the ETNs (if any) are variable and do not represent fixed, periodic interest payments. The Expected Coupon Amount for any ETN may vary significantly from coupon period to coupon period and may be zero. Accordingly, the Expected Current Yield will change over time, and such change may be significant. Any payment on the ETNs is subject to Credit Suisse's ability to pay its obligations as they become due. For more information regarding any ETN's coupon payments, please refer to such ETN's pricing supplement.
(f) "Expected Current Yield" equals the sum of (i) the Expected Coupon Amount, plus (ii) the amount of the ETN's two most recent coupon payments, multiplied by four (to annualize such coupons), divided by the Closing Indicative Value, and rounded to two decimal places for ease of analysis. The Expected Current Yield is subject to change upon the occurrence of a disruption event or other unforeseen circumstances.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements" that are subject to risks and uncertainties, and actual results may differ materially. These statements could contain words such as "possible," "intend," "will," "may," "intends," "would," "if," "expect," "potentially" or other similar expressions. Forward-looking statements, including those relating to UBS AG's plans for the ETNs, are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. While these forward-looking statements represent UBS's judgments, expectations and objectives concerning the matters described, a number of risks, uncertainties and other important factors, including whether UBS AG will actually declare a Coupon Amount for the 3 ETNs traded on NASDAQ, could cause actual developments and results to differ materially from UBS's expectations. For a discussion of the risks and uncertainties that may affect the ETNs please refer to the "Risk Factors" in the prospectus supplements and pricing supplement relating to the 3 ETNs traded on NASDAQ. UBS is not under any obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
About ETRACS
ETRACS ETNs are senior unsecured notes issued by UBS AG, are traded on either NYSE Arca or NASDAQ, 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 for the ETRACS ETN.
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