By Angela McDaniels
Tacoma, Wash., May 20 - UBS AG, London Branch priced $1.52 million of 0% phoenix autocallable notes due June 3, 2015 linked to the common stock of Lennar Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 13.1% per year if Lennar shares close at or above the trigger price, 80% of the initial share price, on the observation date for that quarter. Otherwise, no coupon will be paid for that quarter.
If the stock closes at or above the 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 the shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
UBS Investment Bank is the underwriter with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.
| Issuer: | UBS AG, Londno Branch
|
| Issue: | Phoenix autocallable notes
|
| Underlying stock: | Lennar Corp. (Symbol: LEN)
|
| Amount: | $1.52 million
|
| Maturity: | June 3, 2015
|
| Coupon: | 13.1%, payable quarterly if stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if Lennar shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | Automatically at par plus contingent coupon if Lennar shares close at or above initial price on any quarterly observation date
|
| Initial share price: | $38.53
|
| Final share price: | Average of stock's closing prices on five trading days ending May 29, 2015
|
| Trigger price: | $30.82, 80% of initial price
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| Pricing date: | May 16
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| Settlement date: | May 21
|
| Underwriter: | UBS Investment Bank
|
| Agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 90270KBS7
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