New York, September 6, 2018 – UBS AG today announced that it has suspended further sales from inventory of its outstanding ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (NYSE Arca Ticker: MORL). This suspension will remain in effect until further notice from UBS AG.
As previously announced on October 8, 2015, UBS AG does not intend to issue any new notes of this ETN, which is part of a series of UBS AG debt securities designated as “Medium-Term Notes, Series A.” As a result, following this announcement, UBS does not intend to make further sales of previously issued but unsold notes of this ETN or notes of this ETN that UBS Securities LLC may acquire in the future. This ETN will continue to trade on the NYSE Arca, subject to further notice.
As disclosed in more detail in the applicable pricing and prospectus supplements, the market value of the notes may be influenced by, among other things, supply and demand for the notes. It is possible that the suspension of any further sales of these notes by UBS AG, as described above, may influence the market value of the notes and the liquidity of the market for the notes, potentially leading to insufficient supply and causing the notes 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 notes. In addition, if investors elect to redeem their ETNs, any redemption will be at the redemption value set forth in the applicable product supplement and will not include any premium above that value.
Investors should always consult their financial advisors and compare the intraday indicative value of the notes with the notes’ then-prevailing market price before purchasing or selling these notes, especially notes with premium or discount characteristics.
This announcement does not affect the terms of the outstanding ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETNs, including the right of noteholders to require UBS AG to redeem their notes on the terms and at the redemption price set forth in the applicable product supplement and pricing supplement. Additionally, this announcement does not impact the right of UBS AG to call the notes at the prices and under the circumstances set forth in the applicable product supplement and pricing supplement.
The ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN Series B (NYSE Arca Ticker: MRRL) will not be impacted by this notice and sales will not be suspended for MRRL at this time.