By Susanna Moon
Chicago, Aug. 2 - UBS AG, London Branch priced $3.77 million of contingent income autocallable securities due Aug. 4, 2016 linked to Macy's Inc. shares, according to a 424B2 with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at a rate of 8.2% per year if Macy's stock closes at or above the 75% 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 Macy's stock finishes at or above the 75% trigger level, the payout at maturity will be par plus the contingent payment.
Otherwise, investors will receive a number of shares of Macy's stock equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.
UBS Securities LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Macy's Inc. (Symbol: M)
|
| Amount: | $3,772,750
|
| Maturity: | Aug. 4, 2016
|
| Coupon: | 8.2% annualized, payable quarter, if stock closes at or above trigger level on quarterly determination date
|
| Price: | Par
|
| Payout at maturity: | If stock finishes at or above trigger level, par plus contingent quarterly payment; otherwise, a number of shares of Macy's stock equal to $10 divided by initial share price or, at issuer's option, equivalent cash value
|
| Initial price: | $48.34
|
| Trigger level: | $36.26, 75% 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: | July 31
|
| Settlement date: | Aug. 5
|
| Agent: | UBS Securities LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 2.25%
|
| Cusip: | 90271L569
|
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