UBS plans outperformance jump securities linked to equity, bond funds

By Angela McDaniels

Tacoma, Wash., May 10 - UBS AG, London Branch plans to price 0% outperformance jump securities due June 4, 2015 linked to the performance of the SPDR S&P 500 ETF Trust relative to the iShares Barclays 20+ Year Treasury Bond Fund, according to an FWP filing with the Securities and Exchange Commission.

If the equity trust's return is greater than the bond fund's return, the payout at maturity will be par of $10 plus the upside payment, which is expected to be 15.5% to 19.5% and will be set at pricing.

If the equity trust's return is equal to the bond fund's return, the payout will be par.

If the equity trust's return is less than the bond fund's return, the payout will be par plus the outperformance return, which equals the equity trust's return minus the bond fund's return. In this case, the payout will be less than par.

UBS Securities LLC is the agent. Distribution is through Morgan Stanley Smith Barney LLC.

The notes are expected to price May 30 and settle June 4.

The Cusip number is 90271C528.

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