UBS plans contingent income autocallables linked to three indexes

By Angela McDaniels

Tacoma, Wash., May 17 - UBS AG, London Branch plans to price contingent income autocallable securities due June 4, 2018 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the Topix index, according to an FWP filing with the Securities and Exchange Commission.

If each index closes at or above its coupon barrier level, 75% of its initial index level, on a quarterly determination date, investors will receive a contingent payment of $0.25 per $10.00 note that quarter, which is equivalent to 10% per year.

The notes will be automatically redeemed at par plus the contingent payment if each index closes at or above its initial level on any of the first 19 quarterly redemption determination dates.

If the notes are not called and each index finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final contingent payment, if any. If any index finishes below its downside threshold level, investors will be fully exposed to the decline of the worst-performing index from its initial level.

UBS Securities LLC is the agent. Distribution is through Morgan Stanley Smith Barney LLC.

The notes will price May 30 and settle June 4.

The Cusip number is 90271C627.

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