[Reuters] UBS targets US investors for "CoCo" Tier 2 bond
[UBSN.VX] By Danielle Robinson NEW YORK, Aug 8 (IFR) - UBS is planning to issue the first European Tier 2 transaction offered in the US, where bondholders could see their investment written down to zero if the Swiss bank runs into trouble. Investors and bankers confirmed that the Swiss Bank was roadshowing a low-trigger contingent capital (CoCo) Tier 2 offering in the US. UBS would not comment, but market sources said the Swiss bank was gauging US investor interest in a 10-year bullet subordinated issue, which would see its principal entirely written down if UBS's Tier 1 level breaches the 5% threshold. Sources heard the bank was feeling out interest at a coupon of around 7.5%, in line with the Reg-S dollar denominated low-trigger Tier 2 it did in February that was primarily sold to Asian investors and not offered in the US.