By Toni Weeks
San Luis Obispo, Calif., May 17 - UBS AG, London Branch priced $2.58 million of contingent income autocallable securities due May 19, 2016 linked to Hess Corp. shares, according to a 424B2 with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at a rate of 8.5% per year if Hess stock closes at or above the 70% downside threshold level on the determination date for that quarter.
If the shares close at or above the initial stock price on any of the first 11 quarterly determination dates, the notes will be called at par plus the contingent coupon.
If the notes are not called and Hess stock finishes at or above the 70% trigger level, the payout at maturity will be par plus the contingent payment.
Otherwise, investors will receive a number of shares of Hess stock equal to $10 divided by the initial share price or, at the issuer's 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
|
| Underlying stock: | Hess Corp. (Symbol: HES)
|
| Amount: | $2,582,200
|
| Maturity: | May 19, 2016
|
| Coupon: | 8.5% per year if closing price is at least 70% of initial price on quarterly determination date; otherwise, none
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is at least 70% of initial price, par plus contingent quarterly payment; otherwise, a number of shares of Hess stock equal to $10 divided by initial share price or, at issuer's option, equivalent cash value
|
| Initial price: | $70.60
|
| Downside threshold level: | $49.42, 70% of initial share price
|
| Call: | Par plus contingent payment if closing share price greater than or equal to initial share price on any of first 11 quarterly determination dates
|
| Pricing date: | May 15
|
| Settlement date: | May 20
|
| Agent: | UBS Securities LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 2.25%, used for selling concessions
|
| Cusip: | 90271C510
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
