By Toni Weeks
San Luis Obispo, Calif., Oct. 29 - UBS AG, London Branch priced $4.94 million contingent income autocallable securities due Oct. 28, 2016 linked to the common stock of Darden Restaurants, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Darden Restaurants stock closes at or above the 75% barrier level on a quarterly determination date, the notes will pay a contingent payment of 2.45% for that quarter, equivalent to 9.8% per year.
If the stock closes at or above the initial share price on any of the first 11 quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below the 75% downside threshold level, in which case the payout will be a number of Darden Restaurants 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. Morgan Stanley Smith Barney LLC is the dealer.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Darden Restaurants, Inc. (Symbol: DRI)
|
| Amount: | $4,936,260
|
| Maturity: | Oct. 28, 2016
|
| Coupon: | 2.45% per quarter if Darden Restaurants shares close at or above downside threshold level on review date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus contingent payment; otherwise, a number of Darden Restaurants shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent
|
| Call: | At par plus contingent payment if shares close at or above initial price on any of first 11 quarterly determination dates
|
| Initial share price: | $51.70
|
| Downside threshold: | $38.78, 75% of initial share price
|
| Pricing date: | Oct. 25
|
| Settlement date: | Oct. 30
|
| Agent: | UBS Securities LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 2.25%, all for selling concessions
|
| Cusip: | 90271M864
|
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