UBS plans contingent income autocallable notes linked to Tesoro

By Marisa Wong

Madison, Wis., Nov. 21 – UBS AG, London Branch plans to price contingent income autocallable securities due Dec. 3, 2015 linked to Tesoro Corp. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment at an annual rate of 10.9% if the shares close at or above the 75% downside threshold level on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any of the first three determination dates.

The payout at maturity will be par plus the final coupon unless the shares finish below the 75% downside threshold level, in which case investors will receive a number of Tesoro shares equal to $10 divided by the initial price or, at the issuer’s option, the cash value of those shares.

UBS Securities LLC is the agent with Morgan Stanley Wealth Management handling distribution.

The notes will price on Nov. 28 and settle on Dec. 3.

The Cusip number is 90274F205.

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