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UBS ETRACS 2xLeveraged Long Wells Fargo BDC Index ETN due 5/24/2041
Ticker Symbol: BDCL* CUSIP: 90267B765 Exchange: NYSEA
* NOTE: This security is no longer trading as of 3/16/2020
Company's Online Profile
BUSINESS: UBS ETRACS 2xLeveraged Long Wells Fargo Business Development Company Index ETN due May 24, 2041 are senior unsecured debt securities issued by UBS AG who is offering and selling the Medium-Term Notes, Series A of Exchange Traded Access Securities (ETRACS). INVESTMENT OBJECTIVE: The UBS ETRACS 2xLeveraged Long Wells Fargo Business Development Company Index is designed to track a leveraged investment in the Wells Fargo Business Development Company Index and pay a variable quarterly coupon linked to the leveraged cash distributions associated with the underlying Business Development Company constituents, less financing costs and investor fees. A leveraged long investment strategy involves the practice of borrowing money from a third party lender at an agreed-upon rate of interest and using the borrowed money together with investor capital to purchase assets (e.g., equity securities). A leveraged long investment strategy terminates with the sale of the underlying assets and repayment of the third party lender, provided that the proceeds of the sale of assets are sufficient to repay the loan. By implementing a leveraged strategy, the leveraged investor seeks to benefit from an anticipated increase in the value of the assets between the purchase and sale of such assets and assumes that the increase in value of the assets will exceed the cumulative interest due to the third party lender over the term of the loan. In order to seek to replicate a leveraged long investment strategy in the equity securities of the Index constituents, the Securities provide that each $25 invested by investors on the Initial Trade Date is leveraged through a notional loan of $25 on the Initial Trade Date. Investors are thus considered to have notionally borrowed $25, which, together with the $25 invested, represents a notional investment of $50 in the equity securities of the Index constituents on the Initial Trade Date. INDEX DESCRIPTION: The Wells Fargo Business Development Company Index is a float adjusted, capitalization-weighted Index that is intended to measure the performance of all Business Development Companies (BDC) that are listed on the New York Stock Exchange or NASDAQ and satisfy specified market capitalization and other eligibility requirements. To qualify as a BDC, the company must be registered with the Securities and Exchange Commission and have elected to be regulated as a BDC under the Investment Company Act of 1940. RETURNS AND MATURITY: For each Security, unless earlier redeemed or called, you will receive at maturity a cash payment equal to (a) the product of (i) the Principal Amount and (ii) the Index Performance Ratio as of the last Index Business Day in the Final Measurement Period plus (b) the final Coupon Amount minus (c) the Accrued Tracking Fee as of the last Index Business Day in the Final Measurement Period, plus (d) the Stub Reference Distribution Amount as of the last Index Business Day in the Final Measurement Period, if any. We refer to this cash payment as the Cash Settlement Amount. REDEMPTION AND FEES: Upon early redemption, you will receive per Security a cash payment on the relevant Redemption Date equal to (a) the product of (i) the Current Principal Amount and (ii) the Index Factor as of the Redemption Valuation Date plus (b) the Coupon Amount with respect to the Coupon Valuation Date immediately preceding the Redemption Valuation Date if on the Redemption Valuation Date the Coupon Ex-Date with respect to such Coupon Amount has not yet occurred, plus (c) the Stub Reference Distribution Amount as of the Redemption Valuation Date, if any, minus (d) the Accrued Fees as of the Redemption Valuation Date, minus (e) the Redemption Fee Amount. We refer to this cash payment as the Redemption Amount. You must comply with the redemption procedures in order to redeem your Securities. For calculations of the 0.85% Tracking Fees, Finance Charges, Redemption Fees and for further information on this ETN click on the Link to IPO Prospectus.
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Notes: March 17, 2020 -- UBS Investment Bank today announced that all outstanding notes of the 2×Leveraged Long ETRACS Linked to the Wells Fargo® Business Development Company Index due May 24, 2041 (Ticker: BDCL) (the “Series A Securities“) and the 2×Leveraged Long ETRACS Wells Fargo® Business Development Company Index ETN Series B due May 24, 2041 (Ticker: LBDC) (the "Series B Securities", and together with the Series A Securities, "the Securities") will be mandatorily redeemed in accordance with the terms of the respective Securities as a result of the occurrence of an Acceleration Upon Minimum Indicative Value on March 16, 2020 (the "Acceleration Date"), triggered as a result of the respective indicative values of the
Securities being less than $5.00 on the Acceleration Date.
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IPO - 5/24/2011 -
Link to IPO Prospectus
Small Cap Stock -
Market Value $246.0 Million
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Company's Online Information Links
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| Company's Online SEC EDGAR Filings |
| Company's Email Address Links |
| Foreign Address and Phone Numbers |
| Address: Bahnhofstrasse 45, CH-8098, Zurich, Switzerland |
| Main Phone Number |
+41-44-234-1111 |
| Fax Number |
+41-44-234-3415 |
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Inv Rel Phone Number
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+41-44-234-4100 |
| Address and Phone Numbers |
| U.S. Representative |
USB NY |
| Address: 1285 Avenue of the Americas, New York, NY 10019 |
| Main Phone Number |
212-821-3000 |
| Fax Number |
212-713-1381 |
| Investor Contact
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800-722-7370
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| Toll Free Phone Number |
877-387-7370 |
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