By Marisa Wong
Madison, Wis., Feb. 19 – UBS AG, London Branch priced $4.47 million of contingent income autocallable securities due Feb. 16, 2018 linked to Tesla Motors, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.5% if the stock closes at or above its 60% downside threshold level on the observation date for that quarter.
The notes will be redeemed at par plus the contingent payment if the stock closes at or above the initial price on any of the first 11 determination dates.
The payout at maturity will be par plus the final coupon unless the stock finishes below its 60% downside threshold level, in which case investors will receive a number of Tesla Motors shares equal to $10 divided by the initial share price or, at the issuer’s option, the cash equivalent.
UBS Securities LLC is the agent with Morgan Stanley Wealth Management as distributor.
| Issuer: | UBS AG, London Branch
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Tesla Motors, Inc. (Symbol: TSLA)
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| Amount: | $4,470,300
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| Maturity: | Feb. 16, 2018
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| Coupon: | 11.5% annualized for each quarter that stock closes at or above barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus final coupon unless the stock finishes below downside threshold level, in which case number of Tesla Motors shares equal to $10 divided by initial share price or, at issuer’s option, cash value of those shares
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| Call: | At par plus contingent payment if the stock closes at or above initial level on any of the first 11 determination dates
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| Initial level: | $203.77
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| Downside threshold: | $122.26, 60% of initial level
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| Pricing date: | Feb. 13
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| Settlement date: | Feb. 19
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| Agent: | UBS Securities LLC with Morgan Stanley Wealth Management handling distribution
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| Fees: | 2.5%
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| Cusip: | 90274P146
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