UBS plans trigger autocallable contingent yield notes on Constellation

By Marisa Wong

Morgantown, W.Va., March 2 – UBS AG, London Branch plans to price trigger autocallable contingent yield notes due March 6, 2020 linked to the common stock of Constellation Brands, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at a rate of 8% per year if Constellation Brands shares close at or above the coupon barrier, 72.5% to 77.5% of the initial share price, on the observation date for that quarter. The exact coupon barrier will be set at pricing.

After six months, the notes will be automatically called at par of $10 plus the coupon if Constellation Brands shares close at or above the initial share price on any quarterly observation date other than the final one.

If the notes are not called and the final share price is greater than or equal to the 72.5% to 77.5% downside threshold level, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

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

The notes will price on March 3.

The Cusip number is 90280M749.

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