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

By Marisa Wong

Madison, Wis., July 22 – UBS AG, London Branch plans to price European-style, cash-settled call warrants expiring July 24, 2018 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

The warrants will have a notional amount of $1,000 each, and the price will be $122.50 per warrant, or 12.25% of the notional amount. The minimum purchase requirement is 82 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 July 27, 2018.

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 with J.P. Morgan Securities LLC as placement agent.

The warrants will price on July 24 and settle on July 29.

The Cusip number is 90275C516.

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