UBS plans phoenix autocallables with memory coupon tied to oil index

By Marisa Wong

Morgantown, W.Va., Aug. 11 – UBS AG, London Branch plans to price phoenix autocallable notes with memory interest due Aug. 17, 2018 linked to the S&P GSCI Crude Oil Excess Return index, according to an FWP 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 12%, 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 Aug. 14, 2018.

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

The notes will price on Aug. 14 and settle on Aug. 19.

The Cusip number is 90270KFR5.

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