By Toni Weeks
San Luis Obispo, Calif., Feb. 20 - UBS AG, London Branch priced $284,180 of trigger phoenix autocallable optimization securities due Feb. 22, 2018 linked to the common stock of Lorillard, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Lorillard stock closes at or above the trigger price - 64% of the initial share price - on a monthly observation date, the issuer will pay a contingent coupon for that month at the rate of 8% per year. Otherwise, no coupon will be paid that month.
If the shares close at or above the initial price on any monthly observation date after one year, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Lorillard shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying stock: | Lorillard, Inc. (Symbol: LO)
|
| Amount: | $284,180
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| Maturity: | Feb. 22, 2018
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| Coupon: | 8%, payable monthly if stock closes at or above trigger price on observation date for that month
|
| Price: | Par of $10.00
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| Payout at maturity: | Par plus contingent coupon if Lorillard shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | Automatically at par plus contingent coupon if Lorillard shares close at or above initial price on a monthly observation date beginning Feb. 18, 2014
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| Initial share price: | $41.46
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| Trigger price: | $26.53, 64% of initial price
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| Pricing date: | Feb. 15
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| Settlement date: | Feb. 21
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 2.5%
|
| Cusip: | 90271B538
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