UBS to price callable exchangeables due 2020 linked to Ensco stock

By Angela McDaniels

Tacoma, Wash., May 22 - UBS AG, London Branch plans to price 0% callable exchangeable securities due June 2, 2020 linked to the common stock of Ensco plc, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be an amount of cash equal to the greater of par and the average of the conversion values on May 21, 2020, May 22, 2020 and May 26, 2020.

The conversion value is equal to the share exchange amount multiplied by the closing share price on that day.

The share exchange amount is $1,000 divided by the initial share price divided by the conversion premium of 1.28. The share exchange amount may be adjusted in the case of certain corporate events and will be adjusted in the case of regular quarterly cash dividends that exceed or fall short of $0.50.

The notes are exchangeable at each holder's option at any time for an amount in cash equal to the conversion value.

The notes are callable beginning June 1, 2018. The payout would be the greater of par and the conversion value.

The notes are putable at par if a fundamental change where the value of the distribution property related to that fundamental change consists of 10% or more of cash.

UBS Securities LLC is the underwriter.

The notes are expected to price May 23 and settle May 31.

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