New Issue: UBS prices $5.31 million trigger phoenix autocallables linked to Euro Stoxx 50, S&P 500

By Angela McDaniels

Tacoma, Wash., Dec. 4 - UBS AG, London Branch priced $5.31 million trigger phoenix autocallable optimization securities due Dec. 8, 2023 linked to the Euro Stoxx 50 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If each index finishes at or above its coupon barrier, 67 of its initial level, on a quarterly observation date, the issuer will pay a contingent coupon at the rate of 7% per year. Otherwise, no coupon will be paid for that quarter.

Beginning Dec. 2, 2014, the notes will be automatically called at par of $10 plus the contingent coupon if each index closes at or above its initial level on a quarterly observation date.

If the notes are not called and each index finishes at or above its trigger level, 50% of its initial level, the payout at maturity will be par plus the contingent coupon, if any. If either index finishes below the trigger level, investors will be exposed to the decline of the least-performing index.

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

Issuer:	UBS AG, London Branch
Issue:	Trigger phoenix autocallable optimization securities
Underlying indexes:	Euro Stoxx 50 and S&P 500
Amount:	$5.31 million
Maturity:	Dec. 8, 2023
Coupon:	7% per year, payable quarterly if both indexes close at or above their coupon barriers on observation date for that quarter
Price:	Par of $10.00
Payout at maturity:	Par plus contingent coupon if both indexes finish at or above trigger prices; otherwise, full exposure to decline of least-performing index
Call:	Automatically at par plus contingent coupon if each index closes at or above initial level on a quarterly observation date
Initial index levels:	3,077.23 for Euro Stoxx 50 and 1,800.90 for S&P 500
Coupon barriers:	2,061.74 for Euro Stoxx 50 and 1,206.60 for S&P 500, or 67% of initial levels
Trigger levels:	1,538.62 for Euro Stoxx 50 and 900.45 for S&P 500, or 50% of initial levels
Pricing date:	Dec. 2
Settlement date:	Dec. 5
Underwriters:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	3.5%
	Cusip:	90271R574

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