By Devika Patel
Knoxville, Tenn., May 17 – UBS AG, London Branch priced $9.08 million of trigger autocallable contingent yield notes due May 20, 2020 linked to the SPDR S&P Oil & Gas Exploration & Production exchange traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 10% per year if the fund closes at or above the downside threshold level, 70% of the initial price, on the observation date for that quarter.
After six months, the notes will be automatically called at par of $10 if the fund closes at or above the initial level on any observation date other than the final one.
If the notes are not called and the final price is greater than or equal to the downside threshold level, 70% of the initial price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final price is less than the initial price.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying ETF: | SPDR S&P Oil & Gas Exploration & Production
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| Amount: | $9.08 million
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| Maturity: | May 20, 2020
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| Contingent coupon: | 10%, payable quarterly if fund closes at or above downside threshold on observation date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par unless fund finishes below downside threshold level, in which case 1% loss for each 1% decline from initial level
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| Call: | After six months, automatically at par if fund closes at or above initial level on any observation date other than the final one
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| Initial price: | $35.55
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| Downside threshold: | $24.89, 70% of initial price
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| Pricing date: | May 15
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| Settlement date: | May 18
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2%
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| Cusip: | 90280V426
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