UBS plans contingent income autocallables linked to three indexes

By Toni Weeks

San Luis Obispo, Calif., April 16 - UBS AG, London Branch plans to price contingent income autocallable securities due April 24, 2018 linked to the worst performing of the Euro Stoxx 50 index, the S&P 500 index and the Topix index, according to an FWP filing with the Securities and Exchange Commission.

If each index closes at or above its coupon barrier level, 75% of its initial index level, on a quarterly determination date, investors will receive a contingent payment of $0.2125 that quarter, equivalent to 8.5% per year.

The notes will be automatically redeemed at par plus the contingent coupon if all of the indexes close at or above their respective initial levels on any of the first 19 quarterly redemption determination dates.

If the notes are not called and each index finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any. If any index finishes below its downside threshold level, investors will be fully exposed to the decline of the worst-performing index from its initial level.

UBS Securities LLC will be the agent. Morgan Stanley Smith Barney LLC will handle distribution.

The notes (Cusip: 90271C213) will price April 19 and settle April 24.

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