By Susanna Moon
Chicago, July 17 - UBS AG, London Branch priced $17.84 million of contingent income autocallable securities with step-up call threshold levels due July 20, 2016 linked to General Electric Co shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will a contingent payment at an annualized rate of 8.3% for each quarter that General Electric stock closes at or above the downside threshold level - 80% of the initial share price - on a quarterly determination date.
If the stock closes at or above the redemption level on any of the first 11 determination dates, the notes will be redeemed at par plus the contingent payment. The redemption level will be 105% of the initial stock price until July 15, 2014, stepping up to 110% of the initial stock price through July 15, 2015 and then to 115% of the initial stock price after that.
The payout at maturity will be par plus the contingent payment unless the final share price is less than the downside threshold level, in which case the payout will be a number of General Electric shares equal to the principal amount of notes divided by the initial share price or, at Barclays' option, the cash value of those shares.
UBS Securities LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities with step-up call threshold levels
|
| Underlying stock: | General Electric Co (Symbol: GE)
|
| Amount: | $17,835,770
|
| Maturity: | July 20, 2016
|
| Coupon: | 8.3% annualized for each quarter that closing price is at or above barrier level on quarterly determination date; redemption level will be 105% of initial stock price until July 15, 2014, stepping up to 110% of initial stock price through July 15, 2015 and then to 115% of initial stock price after that
|
| Price: | Par
|
| Payout at maturity: | If shares finish at or above barrier level, par plus contingent quarterly payment; otherwise, full exposure to losses
|
| Initial price: | $23.63
|
| Barrier level: | $18.90, 80% of initial share price
|
| Call: | Par plus contingent payment if shares close above initial share price on first 11 determination dates
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| Pricing date: | July 15
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| Settlement date: | July 18
|
| Agent: | UBS Securities LLC
|
| Dealer: | Morgan Stanley Smith Barney LLC
|
| Fees: | 2.25%
|
| Cusip: | 90271L270
|
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