By Toni Weeks
San Luis Obispo, Calif., July 31 – UBS AG, London Branch priced $2.26 million of phoenix autocallable notes due Aug. 2, 2018 linked to the S&P GSCI Crude Oil Excess Return index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index closes at or above the barrier level – 65% of the initial level – on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 11%, plus any previously unpaid contingent interest payments with respect to any previous review days on which the index closed below the interest barrier.
If the index closes at or above the initial level on a quarterly observation date, the notes will be called at par plus the contingent coupon and any previously unpaid contingent interest payments with respect to any previous review days on which the index closed below the interest barrier.
If the notes are not called and the index finishes at or above the 65% trigger level, the payout at maturity will be par plus the contingent coupon and any previously unpaid coupons. Otherwise, investors will be exposed to the index decline from the initial level.
The final index level will be the average of the closing index levels on the five trading days ending July 30, 2018.
UBS Investment Bank is the underwriter. J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Phoenix autocallable notes
|
| Underlying index: | S&P GSCI Crude Oil Excess Return index
|
| Amount: | $2,255,000
|
| Maturity: | Aug. 2, 2018
|
| Coupon: | 11%, plus any previously unpaid coupons, if index closes at or above barrier level on quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon and previously unpaid coupons if index finishes at or above trigger level; otherwise, par plus index return, with full exposure to losses
|
| Call: | Automatically at par plus contingent coupon and previously unpaid coupons if index closes at or above initial level on a quarterly observation date
|
| Initial level: | 231.5702
|
| Barrier/trigger level: | 150.5206, 65% of initial level
|
| Pricing date: | July 28
|
| Settlement date: | July 31
|
| Underwriter: | UBS Investment Bank
|
| Agents: | J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA
|
| Fees: | 2%
|
| Cusip: | 90270KFK0
|
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