UBS plans relative performance notes on Euro Stoxx, Treasury index

By Marisa Wong

Madison, Wis., Dec. 17 - UBS AG, London Branch plans to price 0% relative performance securities due Dec. 31, 2018 linked to the Euro Stoxx 50 index and the NYSE US 5 Year Treasury Futures index, according to a 424B3 filing with the Securities and Exchange Commission.

The Euro Stoxx 50 is the "long index," and the Treasury index is the "short index." The relative return will be the long index return minus the short index return.

If the long index return is greater than or equal to the short index return, the payout at maturity will be par of $10 plus 146% to 156% of the relative return. The exact participation rate will be set at pricing.

If the long index return is less than the short index return, the payout will be par plus the relative return, which will be negative.

The notes (Cusip: 90271R848) are expected to price Dec. 27 and settle Dec. 31.

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

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