UBS to price relative performance notes linked to S&P 500, NYSE US 5 Year Treasury indexes

By Angela McDaniels

Tacoma, Wash., Nov. 15 - UBS AG, London Branch plans to price 0% relative performance securities due Nov. 30, 2018 linked to the S&P 500 index and the NYSE US 5 Year Treasury Futures index, according to a 424B3 filing with the Securities and Exchange Commission.

The S&P 500 is the "long index," and the Treasury index is the "short index." The relative return will be the long index return minus the short index return.

If the long index return is greater than or equal to the short index return, the payout at maturity will be par of $10 plus 120% to 129% of the relative return. The exact participation rate will be set at pricing.

If the long index return is less than the short index return, the payout will be par plus the relative return, which will be negative and result in investors receiving less than par.

UBS Financial Services Inc. and UBS Investment Bank are the underwriters.

The notes are expected to price Nov. 25 and settle Nov. 29.

The Cusip number is 90271R467.

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