UBS plans contingent income autocallable notes linked to Tesla Motors

By Susanna Moon

Chicago, May 14 – UBS AG, London Branch plans to price contingent income autocallable securities due May 25, 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 14.5% if the stock closes at or above its 70% barrier 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 redemption level 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 70% barrier level, in which case investors will receive a number of Tesla 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 handling distribution.

The notes will price on May 22 and settle on May 28.

The Cusip number is 90274T478.

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