By Marisa Wong
Madison, Wis., May 2 - UBS AG, London Branch priced $10.48 million of contingent income autocallable securities due May 5, 2016 linked to JPMorgan Chase & Co. shares, according to a 424B2 with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at a rate of 9.4% per year if JPMorgan stock closes at or above the 80% downside threshold level on the determination date for that quarter.
If the shares close at or above the initial stock price on any of the first 11 quarterly determination dates, the notes will be called at par plus the contingent coupon.
If the notes are not called and JPMorgan stock finishes at or above the 80% downside threshold level, the payout at maturity will be par plus the contingent payment.
Otherwise, investors will receive a number of shares of JPMorgan stock equal to $10 divided by the initial share price or, at the issuer's option, the cash value of those shares.
UBS Securities LLC is the agent with Morgan Stanley Smith Barney LLC handling distribution.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | JPMorgan Chase & Co. (NYSE: JPM)
|
| Amount: | $10,477,560
|
| Maturity: | May 5, 2016
|
| Coupon: | 9.4% per year if closing price is at least 80% of initial price on quarterly determination date; otherwise, none
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is at least 80% of initial price, par plus contingent quarterly payment; otherwise, a number of shares of JPMorgan stock equal to $10 divided by initial share price or, at issuer's option, equivalent cash value
|
| Initial price: | $49.01,
|
| Downside threshold level: | $39.21, 80% of initial share price
|
| Call: | Par plus contingent payment if closing share price greater than or equal to initial share price on any of first 11 quarterly determination dates
|
| Pricing date: | April 30
|
| Settlement date: | May 3
|
| Agent: | UBS Securities LLC with Morgan Stanley Smith Barney LLC handling distribution
|
| Fees: | 2.25%, used for selling concessions
|
| Cusip: | 90271C379
|
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