Bringing you live news and features since 2006 

UBS launches consent solicitation for ETN


UBS has launched a consent solicitation for its Exchange Traded Access Securities (ETRACS) linked to the UBS Bloomberg Constant Maturity Commodity Index Total Return due 2038.

The securities trade on the NYSE Arca under the ticker symbol UCI.

Subject to the terms and conditions set forth in the consent solicitation statement dated 16 October 2012 and the accompanying letter of transmittal, UBS is soliciting consents to the proposed amendment of the indenture from each person in whose name securities were registered at 5:00 p.m., New York City time, on 15 October 2012, or their duly designated proxies, including persons who held securities through The Depository Trust Company as of the record date.

Pursuant to the terms of the securities, UBS has the right to redeem all, but not less than all, outstanding securities on any “trading day” on or after 4 April 2013, provided that the aggregate principal amount of the securities outstanding must be less than USD10,000,000 on the fifth trading day prior to the applicable “call settlement date”. Also, pursuant to the terms of the securities, the “fee amount” is currently an amount equal to 0.65 per cent per annum calculated on a daily basis.

The proposed amendment would give UBS the right, on or after 4 April 2013, to redeem all, but not less than all, outstanding securities, without regard to the amount of securities outstanding. If UBS receives the requisite consents to make such change to the redemption provision of the securities and enters into the supplemental indenture, then UBS will also reduce the fee amount of the securities applicable to the period beginning on the day after such supplemental indenture is entered into and continuing until the “maturity date” from an amount equal to 0.65 per cent per annum to an amount equal to 0.55 per cent per annum, calculated on a daily basis.

Under the indenture, holders must deliver (and not revoke) valid consents in respect of at least 662/3 per cent in principal amount of the outstanding securities to approve the proposed amendment.

The consent solicitation is being made pursuant to the statement and accompanying letter of transmittal, and investors should review these documents for important terms and conditions relating to the consent solicitation.

A beneficial owner of an interest in securities held through a DTC participant must properly instruct such DTC participant sufficiently in advance of 5:00 p.m., New York City Time, on 7 November 2012 (which time and date may be extended, pursuant to the terms of the statement) to cause a consent to be delivered by such DTC participant with respect to the proposed amendment.

Latest News

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by