UBS plans trigger phoenix autocallables linked to Russell, S&P funds

By Toni Weeks

San Diego, Jan. 11 - UBS AG, London Branch plans to price trigger phoenix autocallable optimization securities due Jan. 22, 2018 linked to the iShares Russell 2000 index fund and the SPDR S&P 500 ETF Trust, according to an FWP filing with the Securities and Exchange Commission.

If both funds close at or above the 69% trigger level on any quarterly observation date, the notes will pay an annualized contingent coupon of 8% for that quarter.

If both funds close at or above the initial price on any quarterly observation date after one year, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called, the payout at maturity will be par plus the contingent coupon unless either fund finishes below the trigger price, in which case investors will be fully exposed to the decline of the least-performing fund.

The notes (Cusip: 90271B256) are expected to price Jan. 11 and settle Jan. 16.

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

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