UBS Provides a Reminder Around the Upcoming Maturity of the UBS AG FI Enhanced Large Cap Growth ETNs
UBS AG has issued a reminder about the upcoming maturity of its UBS AG FI Enhanced Large Cap Growth ETNs, originally scheduled for June 19, 2024, but adjusted to June 20, 2024, due to a non-trading day. The ETNs are to a maximum of 245,000 outstanding units. The final trading day will be June 18, 2024, with a final measurement period from June 10 to June 14, 2024. Investors will receive the Payment at Maturity as calculated in the prospectus supplements. UBS cautions that the suspension of new issuances could impact market value and liquidity, potentially causing ETNs to trade at a premium, which may lead to financial losses for investors paying above the indicative value. The announcement does not change the terms of the ETNs or the redemption rights of holders.
- UBS AG provides clear guidance on the maturity and final trading dates of the ETNs.
- Investors will receive the Payment at Maturity as specified in the prospectus supplements.
- The ETNs will continue trading on NYSE Arca until the final trading day, June 18, 2024.
- The maximum number of ETNs is capped at 245,000, limiting liquidity in the market.
- Suspension of new issuances may cause ETNs to trade at a premium, leading to potential financial losses for investors.
- Investors buying at a premium above the indicative value may suffer losses if they hold until maturity.
Table-1
ETN Ticker |
ETN Name and Prospectus Supplement [1] |
CUSIP |
Maturity Date |
FBGX |
UBS AG FI Enhanced Large Cap Growth ETN due June 19, 2024[2] |
902677780 |
06/20/2024* |
* The originally scheduled Maturity Date of June 19, 2024 is expected to be adjusted to June 20, 2024 due to a non-Trading Day on June 19, 2024 as described in the prospectus supplements. |
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[1] The table above provides a hyperlink to the relevant prospectus and supplements thereto for the ETNs. The ETNs are part of the UBS AG’s Medium Term Notes, Series A, on which UBS AG and UBS Switzerland AG are co-obligors. Capitalized terms used but not defined in this press release shall have the meanings ascribed to such terms in the relevant prospectus supplement (including, as applicable, any product supplement and pricing supplement (each such supplement, a “prospectus supplement”)) for the ETNs.
[2] The prospectus addendum with a link to the updated base prospectus can be accessed here.
On the Maturity Date of the ETNs, investors holding the ETNs will receive the Payment at Maturity, which will be calculated as specified in the prospectus supplements. We expect that the last day of trading for the ETNs will be June 18, 2024.
Additional details regarding the measurement periods are included in Table-2 below.
Table-2
ETN Ticker |
Final Measurement Period |
Final Measurement Period Start Date |
Final Measurement Period End Date |
Maturity Date |
FBGX |
5 Trading Days |
06/10/2024* |
06/14/2024* |
06/20/2024* |
*Subject to adjustment as described in the prospectus supplements. The originally scheduled Maturity Date of June 19, 2024 is expected to be adjusted to June 20, 2024 due to a non-Trading Day on June 19, 2024. |
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UBS AG had previously announced on January 7, 2022 that it would cap the maximum number of ETNs outstanding at any time to 245,000. At that time, UBS AG expected that its affiliate, UBS Securities LLC, may continue to sell the ETNs that UBS AG had previously issued or that UBS Securities LLC may acquire in the future, subject to the maximum number of the ETNs outstanding as specified previously. UBS AG expected that the ETNs would continue to trade on the NYSE Arca and that its affiliate, UBS Securities LLC, may continue to make markets in the ETNs. UBS AG currently expects to continue to cap the maximum number of ETNs until the Maturity Date.
As disclosed in more detail in the prospectus supplements for the ETNs, the market value of the ETNs may be influenced by, among other things, supply and demand for the ETNs. It is possible that the discontinuance of further issuances of the ETNs by UBS AG may influence the market value of the ETNs. The suspension of new issuances of the ETNs could affect the liquidity of the market for the ETNs, potentially leading to insufficient supply and causing the ETNs 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 ETNs. In addition, on the Maturity Date, holders will receive the Payment at Maturity as described in the prospectus supplements but will not receive any premium thereto. Accordingly, investors who purchase the ETNs at any time prior to the Maturity Date for an amount that is greater than the Payment at Maturity (including paying any premium to the indicative value of the ETNs) will suffer a loss on their investment if they hold their ETNs until the Maturity Date.
If investors elect to redeem any such ETNs, any redemption will be at the redemption value set forth in the prospectus supplements and will not include any premium above that value. Investors should always consult their financial advisors and compare the intraday indicative value of the ETNs with the ETNs’ then-prevailing market price before purchasing or selling any such ETNs, especially notes with premium characteristics. The prospectus supplement for the ETNs can be accessed by clicking on the name of the ETN in Table-1 above as well as on the SEC's website at sec.gov.
This announcement does not affect the terms of the outstanding ETNs, including the right of holders to require UBS AG to redeem their ETNs on the terms and at the redemption price set forth in the prospectus supplements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor will there be any sale of these ETNs in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
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 complete the redemption of the ETNs, 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 relating to the ETNs referenced in Table-1. 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 UBS ETNs
UBS 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 UBS 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 UBS ETNs. Prior to making an investment in the UBS ETNs, investors should take into account whether or not the market price is tracking the intraday indicative value of the UBS ETNs. We urge you to read the more detailed explanation of risks described under “Risk Factors” in the applicable prospectus supplement for the UBS 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 prospectus, along with the applicable prospectus supplement to understand fully the terms of the ETNs and other considerations that are important in making a decision about investing in the ETNs. The applicable offering document for the ETNs may be obtained by clicking on the name of the ETNs in Table-2 above. You may also get these documents without cost by visiting EDGAR on the SEC website at www.sec.gov. 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
About UBS
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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 (http://www.sipc.org/).
UBS 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, for the offering of the UBS 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. Alternatively, you can request the prospectus and applicable prospectus 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 ETNs have been developed solely by UBS. The ETNs are not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). FTSE Russell is a trading name of certain of the LSE Group companies. All rights in the FTSE Russell Indices (the “Indices”) vest in the relevant LSE Group company which owns the Index. “Russell®” and “FTSE Russell®” are a trademarks of the relevant LSE Group company and are used by any other LSE Group company under license. The Index is calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of the ETNs. The LSE Group makes no claim, prediction, warranty or representation either as to the results to be obtained from the ETNs or the suitability of the Index for the purpose to which it is being put by UBS.
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 2024. The key symbol and UBS are among the registered and unregistered trademarks of UBS. Other marks may be trademarks of their respective owners. All rights reserved.
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Media
Alison Keunen
+1 212 713 2296
alison.keunen@ubs.com
Institutional Investor contact1
+1-877-387 2275
Source: UBS AG
FAQ
When is the maturity date for UBS AG FI Enhanced Large Cap Growth ETNs?
What is the final trading day for UBS AG FI Enhanced Large Cap Growth ETNs?
How many UBS AG FI Enhanced Large Cap Growth ETNs are allowed to be outstanding?
Could the suspension of new issuances impact the market value of UBS AG FI Enhanced Large Cap Growth ETNs?
What risk do investors face if they purchase UBS AG FI Enhanced Large Cap Growth ETNs at a premium?
