UBS plans to price market plus notes linked to equity basket

By Toni Weeks

San Luis Obispo, Calif., Feb. 6 - UBS AG, London Branch plans to price 0% market plus notes due Feb. 11, 2016 tied to a basket of six common stocks or American Depositary Shares, according to a 424B2 filing with the Securities and Exchange Commission.

The equally weighted basket equities include AstraZeneca plc, Bristol-Myers Squibb Co., Eli Lilly and Co., Merck & Co., Inc., Pfizer Inc. and Walgreen Co.

If the basket return is positive, the payout at maturity will be 1.18 times the basket return.

If the basket return is positive but greater than or equal to the barrier amount of negative 15%, the payout will be par. If the basket return is less than the barrier amount, investors will be fully exposed to the decline in the basket from its initial level.

The notes (Cusip: 90270KAU3) are expected to price Feb. 7 and settle Feb. 12.

UBS Investment Bank is the underwriter. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.

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