UBS plans trigger phoenix autocallables linked to Rio Tinto

By Marisa Wong

Madison, Wis., June 3 - UBS AG, London Branch plans to price trigger phoenix autocallable optimization securities due June 12, 2019 linked to the American Depositary Shares of Rio Tinto plc, according to an FWP filing with the Securities and Exchange Commission.

If Rio Tinto shares close at or above the trigger price - 70% to 75% of the initial share price - on a monthly observation date, the issuer will pay a contingent coupon for that month at the rate of 8% per year. Otherwise, no coupon will be paid that month.

If the shares close at or above the initial price on any monthly observation date after one year, the notes will be called at par plus the contingent coupon.

If the notes are not called and Rio Tinto shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.

UBS Financial Services Inc. and UBS Investment Bank are the underwriters.

The notes will price on June 6 and settle on June 11.

The Cusip number is 90272X711.

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