UBS plans inverse phoenix autocallables tied to light sweet crude oil

By Marisa Wong

Morgantown, W.Va., March 30 – UBS AG, London Branch plans to price inverse phoenix autocallable notes with static buffer and memory interest due Oct. 6, 2016 linked to the inverse performance of the light sweet crude oil (WTI) futures contract, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent coupon of 5% if the futures contract price is at or below the interest barrier level, 124.5% of the initial price, on each observation date, plus any previously unpaid contingent interest payments. The observation dates are July 1 and Oct. 3, 2016.

The notes will be called at par plus the contingent coupon if the futures contract price is at or below the initial price on July 1.

The payout at maturity will be par unless the underlying return is greater than 24.5%, in which case investors will lose 1.3333% for each 1% gain above the 24.5% buffer.

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

The notes will price on April 1 and settle on April 6.

The Cusip number is 90270KGM5.

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