By Marisa Wong
Morgantown, W.Va., March 23 – UBS AG, London Branch priced $1.6 million of trigger phoenix autocallable optimization securities due March 26, 2021 linked to the common stock of Netflix, Inc., according to a 424B3 filing with the Securities and Exchange Commission.
If Netflix stock closes at or above the trigger price – 50% of the initial share price – on a monthly observation date, the issuer will pay a contingent coupon for that month at the rate of 12.9% per year. Otherwise, no coupon will be paid that month.
If the shares close at or above the initial price on a monthly observation date after one year, the notes will be called at par plus the contingent coupon.
If the notes are not called and Netflix 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.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying stock: | Netflix, Inc. (Nasdaq: NFLX)
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| Amount: | $1.6 million
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| Maturity: | March 26, 2021
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| Coupon: | 12.9% per year, payable monthly if stock closes at or above trigger price on observation date for that month
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| Price: | Par of $10.00
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| Payout at maturity: | Par plus contingent coupon if Netflix shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | Automatically at par plus contingent coupon if Netflix shares close at or above initial price on a monthly observation date after one year
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| Initial share price: | $99.84
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| Trigger price: | $49.92, 50% of initial price
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| Pricing date: | March 22
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| Settlement date: | March 28
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.25%
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| Cusip: | 90275R240
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