By Angela McDaniels
Tacoma, Wash., May 10 - UBS AG, London Branch priced $6.45 million of contingent income autocallable securities due May 11, 2018 linked to the worst performing of the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index closes at or above its barrier level, 60% of its initial index level, on a quarterly determination date, investors will receive a contingent payment of $0.1725 that quarter, which is equivalent to 6.9% per year.
The notes will be automatically redeemed at par of $10.00 plus the contingent coupon if both indexes close at or above their respective initial levels on any of the first 19 quarterly redemption determination dates.
If the notes are not called and each index finishes at or above its barrier level, the payout at maturity will be par plus the final contingent coupon. If either index finishes below its barrier, investors will be fully exposed to the decline of the worst-performing index from its initial level.
UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | Euro Stoxx 50 index and Russell 2000 index
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| Amount: | $6.45 million
|
| Maturity: | May 11, 2018
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| Coupon: | If each index closes at or above its barrier level on a quarterly determination date, investors will receive $0.1725 that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If each index finishes at or above its barrier level, par plus final contingent coupon; if either index finishes below its barrier, full exposure to decline of worst-performing index from its initial level
|
| Call: | Automatically at par plus contingent coupon if both indexes close at or above their respective initial levels on any of first 19 quarterly redemption determination dates
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| Initial index levels: | 2,784.62 for Euro Stoxx 50 and 970.41 for Russell 2000
|
| Barrier levels: | 1,670.77 for Euro Stoxx and 582.25 for Russell 2000; 60% of initial levels
|
| Pricing date: | May 8
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| Settlement date: | May 10
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| Agent: | UBS Securities LLC
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| Distribution: | Morgan Stanley Smith Barney LLC
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| Fees: | 3%
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| Cusip: | 90271C486
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