UBS plans contingent absolute return autocallables on Bank of America

By Susanna Moon

Chicago, July 27 – UBS AG, London Branch plans to price 0% contingent absolute return autocallable optimization securities due Aug. 8, 2016 linked to Bank of America Corp. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call premium of 7.4% to 9.4% if Bank of America stock closes at or above the initial share price on any quarterly observation date. The exact call premium will be set at pricing.

If the stock finishes at or above the trigger level, 85% of the initial level, the payout at maturity will be par plus the absolute value of the stock return.

Otherwise, investors will be fully exposed to any losses.

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

The notes will price on July 29 and settle on July 31.

The Cusip number is 90275C557.

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