By Wendy Van Sickle
Columbus, Ohio, Oct. 14 – UBS AG, London Branch priced $3.22 million of trigger autocallable contingent yield notes due Oct. 10, 2019 linked to the common stock of Starbucks, Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 7% per year if Starbucks shares close at or above the downside threshold level, 72.3% of the initial share price, on the observation date for that quarter.
After six months, the notes will be automatically called at par of $10 if Starbucks shares close at or above the initial share price on any quarterly observation date.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share 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 stock: | Starbucks, Corp. (Symbol: SBUX)
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| Amount: | $3,221,500
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| Maturity: | Oct. 10, 2019
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| Coupon: | 7% annualized, payable quarterly if shares close at or above downside threshold level on observation date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
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| Call: | At par plus coupon if shares close at or above initial price on any quarterly observation date after six months
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| Initial share price: | $53.46
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| Downside threshold: | $38.65, 72.3% of initial share price
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| Pricing date: | Oct. 7
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| Settlement date: | Oct. 13
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2%
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| Cusip: | 90275Y559
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