UBS plans one-year contingent income autocallables linked to Baidu

By Susanna Moon

Chicago, July 25 – UBS AG, London Branch plans to price contingent income autocallable securities due Aug. 6, 2015 linked to American Depositary Shares of Baidu, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 12.52% if Baidu stock closes at or above the barrier level, 75% of the initial share price, on any quarterly determination date.

The notes will be redeemed at par of $10 plus the contingent coupon if the stock closes at or above the initial level on any of the first three quarterly determination dates.

If the notes are not called and the final share price is greater than or equal to the 75% barrier level, the payout at maturity will be par plus the contingent coupon.

Otherwise, the payout will be a number of Baidu shares 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 Wealth Management handling distribution.

The notes will price on Aug. 1 and settle on Aug. 6.

The Cusip number is 90273E712.

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