UBS to price contingent income autocallables tied to Genworth

By Marisa Wong

Madison, Wis., July 30 - UBS AG, London Branch plans to price contingent income autocallable securities due Aug. 4, 2016 linked to Genworth Financial, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at a rate of 10.8% to 11.2% per year if Genworth stock closes at or above the 70% downside threshold level on the determination date for that quarter. The exact coupon will be determined at pricing.

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 Genworth stock finishes at or above the downside threshold price, the payout at maturity will be par plus the contingent payment. Otherwise, investors will receive a number of shares of Genworth stock equal to $10 divided by the initial share price or, at the issuer's option, the cash value of those shares.

The notes (Cusip: 90271L593) will price July 31 and settle Aug. 5.

UBS Securities LLC will be the agent with Morgan Stanley Smith Barney LLC handling distribution.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.