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

By Toni Weeks

San Luis Obispo, Calif., Feb. 10 – UBS AG, London Branch plans to price European-style, cash-settled call warrants due Feb. 16, 2018 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 will be $139.70 per warrant, or 13.97% of the notional amount.

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 multiplied by the index return and (b) zero.

The index return must be greater than 13.97% 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.

The exact terms will be determined at pricing.

J.P. Morgan Securities LLC and UBS Investment Bank are the agents.

The warrants are expected to price Feb. 13 and settle Feb. 19.

The Cusip number is 90274P161.

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