UBS plans contingent income autocallables tied to Euro Stoxx, Russell

By Toni Weeks

San Luis Obispo, Calif., Jan. 8 - UBS AG, London Branch plans to price contingent income autocallable securities due Jan. 15, 2019 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.

The notes will pay a contingent quarterly coupon at an annual rate of 7% if each index closes at or above its 73% coupon barrier level on a determination date for that quarter.

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

If the notes are not called, the payout at maturity will be par plus the final contingent coupon unless either index finishes below its 73% downside threshold level, in which case investors will be fully exposed to the decline of the worst-performing index.

The notes (Cusip: 90271T307) are expected to price Jan. 10 and settle Jan. 15.

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

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