UBS plans contingent income autocallable notes linked to Marathon

By Susanna Moon

Chicago, Aug. 7 – UBS AG, London Branch plans to price contingent income autocallable securities due Aug. 17, 2018 linked to Marathon Petroleum Corp. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 10.8% if the shares close at or above the 80% barrier level on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any determination date.

The payout at maturity will be par plus the final coupon unless the shares finish below the 80% trigger level, in which case investors will receive a number of Marathon shares equal to $10 divided by the initial 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. 14 and settle on Aug. 19.

The Cusip number is 90275C714.

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