UBS to price contingent absolute return autocallables linked to Gap

By Toni Weeks

San Luis Obispo, Calif., Jan. 22 - UBS AG, London Branch plans to price 0% contingent absolute return autocallable optimization securities due Feb. 2, 2015 linked to Gap, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at par plus an annualized call premium of 8% to 10% if Gap stock closes at or above the initial share price on any quarterly observation date. The exact call premium will be set at pricing.

If the notes are not called and the final share price is at or above the 80% trigger level, the payout at maturity will be par plus the absolute value of the return.

Otherwise, investors will be fully exposed to the decline in the stock price from the initial price.

The notes (Cusip: 90271T471) are expected to price Jan. 24 and settle Jan. 31.

UBS Financial Services Inc. and UBS Investment Bank are the agents.

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