UBS plans to price knock-out notes due 2020 linked to gold

By Sarah Lizee

Olympia, Wash., Nov. 13 – UBS AG London Branch plans to price 0% knock-out notes due Dec. 18, 2020 linked to gold, according to a 424B2 filing with the Securities and Exchange Commission.

A knock-out event will occur if on any day during the life of the notes the commodity closes above 130% of its initial level.

If a knock-out event has not occurred, the payout at maturity will be 96% of par plus the return of the commodity, subject to a floored payout of $960 per $1,000 of notes. This means that the price of gold needs to rise by at least 4% for investors to receive their principal back.

If a knock-out event has occurred, the payout will be par plus 11.5%.

UBS Investment Bank and J.P. Morgan Securities LLC are the agents.

The notes will price on Nov. 15.

The Cusip number is 90270KV22.

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