UBS to price trigger phoenix autocallables on Occidental Petroleum

By Jennifer Chiou

New York, Oct. 10 - UBS AG, London Branch plans to price trigger phoenix autocallable optimization securities due Oct. 17, 2018 linked to the common stock of Occidental Petroleum Corp., according to an FWP with the Securities and Exchange Commission.

If the price of Occidental Petroleum stock closes at or above the trigger price - 71% to 75% of the initial share price - on any monthly observation date, the issuer will pay a contingent coupon of 8% per year. Otherwise, no coupon will be paid for that month. The exact trigger price will be set at pricing.

If the share price is greater than or equal to the initial price on any of the observation dates after one year, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called and the Occidental Petroleum share price finishes 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.

The notes (Cusip: 90271M740) are expected to price on Oct. 11 and settle on Oct. 17.

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

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