UBS plans to price three-year call warrants linked to Euro Stoxx 50

By Marisa Wong

Madison, Wis., Sept. 23 – UBS AG, London Branch plans to price European-style, cash-settled call warrants expiring Sept. 29, 2017 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notional amount is $1,000 per warrant. The initial investment is $109.50 per warrant, or 10.95% of the notional amount. The minimum purchase is 92 warrants.

The warrants will be automatically exercised on the expiration date if the index’s final level is greater than the initial index level. The cash settlement amount will be the greater of (a) the notional amount per warrant multiplied by the index return and (b) zero. The cash settlement payment date is Sept. 29, 2017.

The index return must be greater than 10.95% for investors to receive a positive return on their initial investments.

If the index’s final level is equal to or less than the initial index level, the warrants will expire worthless and investors will lose their entire initial investments in the warrants.

UBS Investment Bank is the underwriter, and J.P. Morgan Securities LLC is the placement agent.

The notes will price Sept. 26 and settle Oct. 1.

The Cusip number is 90273L856.

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