By Toni Weeks
San Luis Obispo, Calif., May 30 - UBS AG, London Branch priced $4.5 million of trigger phoenix autocallable optimization securities due June 3, 2016 linked to the least-performing of Bank of America Corp., Bristol-Myers Squibb Co. and General Electric Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.
If the closing price of each underlying equity closes at or above its coupon barrier price - 75% of the initial price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at a rate of 13% per year. Otherwise, no coupon will be paid that quarter.
If each stock closes at or above its initial price on any quarterly observation date, the notes will be called at par plus the contingent coupon.
If the notes are not called and each stock finishes at or above the 75% trigger level, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the price decline of the least-performing stock from the initial price.
UBS Securities LLC and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying stocks: | Bank of America Corp. (Symbol: BAC), Bristol-Myers Squibb Co. (Symbol: BMY) and General Electric Co. (Symbol: GE)
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| Amount: | $4.5 million
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| Maturity: | June 3, 2016
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| Coupon: | 13%, payable quarterly if each stock closes at or above trigger price on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon if each stock finishes at or above 75% trigger level; otherwise, full exposure to decline of least-performing stock from initial price
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| Call: | Automatically at par plus contingent coupon if each stock closes at or above its initial price on any quarterly observation date
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| Initial share prices: | $15.14 for BofA, $48.63 for Bristol-Myers, $26.66 for GE
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| Trigger/barrier prices: | $11.36 for BofA, $36.47 for Bristol-Myers, $20.00 for GE, 75% of initial prices
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| Pricing date: | May 28
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| Settlement date: | May 30
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| Underwriters: | UBS Securities LLC and UBS Investment Bank
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| Fees: | 2.5%
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| Cusip: | 90270KCB3
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