By Toni Weeks
San Luis Obispo, Calif., July 2 – UBS AG, London Branch priced $11.36 million of contingent income autocallable securities due June 30, 2017 linked to Dow Chemical Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly payment at an annualized rate of 8.5% if Dow Chemical 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 level 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 Dow Chemical stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent payment.
Otherwise, investors will receive a number of shares of Dow Chemical stock equal to $10 divided by the initial stock price or, at the issuer’s option, the cash value of those shares.
UBS Securities LLC will be the agent. Morgan Stanley Smith Barney LLC will handle distribution.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Dow Chemical Co. (Symbol: DOW)
|
| Amount: | $11,357,360
|
| Maturity: | June 30, 2017
|
| Contingent payment: | If Dow Chemical shares close at or above downside threshold on quarterly determination date, $0.2125 per note; otherwise, no contingent payment for that period
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold, par plus the coupon; if final share price is less than downside threshold, a number of Dow Chemical shares equal to $10 divided by initial stock price or, at issuer’s option, equivalent value in cash
|
| Call: | Automatically at par plus coupon if closing share price is greater than or equal to initial price on any of first 11 quarterly determination dates
|
| Initial share price: | $51.61
|
| Downside threshold: | $41.29, 80% of initial share price
|
| Pricing date: | June 27
|
| Settlement date: | July 2
|
| Agent: | UBS Securities LLC
|
| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 2.25%
|
| Cusip: | 90273E142
|
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