UBS plans contingent income autocallable notes linked to two indexes

By Toni Weeks

San Luis Obispo, Calif., Aug. 15 - UBS AG, London Branch plans to price contingent income autocallable securities due Aug. 23, 2018 linked to the worst performing of the Euro Stoxx 50 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

If each index closes at or above its coupon barrier level, 65% of its initial index level, on a quarterly determination date, the notes will pay a contingent payment at an annualized rate of 7% for that quarter.

The notes will be called at par plus the contingent coupon if each index closes at or above the respective initial level on any of the first 19 quarterly redemption determination dates.

The payout at maturity will be par plus the final contingent coupon unless either index finishes below its downside threshold level, 65% of its initial level, in which case investors will be fully exposed to the decline of the worst-performing index.

UBS Securities LLC will be the agent. Morgan Stanley Smith Barney LLC will handle distribution.

The notes (Cusip: 90271L825) will price Aug. 20 and settle Aug. 23.

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