Correction: UBS plans contingent income notes on General Electric

A story in the July 3 edition of the Prospect News Structure Products Daily incorrectly reported the call threshold level of an upcoming issue of contingent income autocallable securities linked to General Electric Co. shares. UBS AG, London Branch is the issuer. A corrected version of the story follows:

By Toni Weeks

San Luis Obispo, Calif., July 3 - UBS AG, London Branch plans to price contingent income autocallable securities due July 20, 2016 linked to General Electric Co. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at a rate of 8.3% to 10.3% per year if General Electric stock closes at or above the 80% downside threshold level on the determination date for that quarter. The exact coupon will be determined at pricing.

If the shares close at or above the applicable call threshold level on any of the first 11 quarterly determination dates, the notes will be called at par plus the contingent coupon. The call threshold level is initially 105% of the initial share price, stepping up to 110% of the initial share price on July 15, 2014 and to 115% of the initial share price on July 15, 2015.

If the notes are not called and General Electric stock finishes at or above the downside threshold price, the payout at maturity will be par plus the contingent payment. Otherwise, investors will receive a number of shares of General Electric stock equal to $10 divided by the initial share price or, at the issuer's option, the cash value of those shares.

The notes (Cusip: 90271L270) will price July 15 and settle July 18.

UBS Securities LLC is the agent with Morgan Stanley Smith Barney LLC handling distribution.

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