UBS plans three-year contingent income autocallables tied to Transocean

By Susanna Moon

Chicago, Nov. 29 - UBS AG, London Branch plans to price contingent income autocallable securities due Dec. 3, 2015 linked to Transocean Ltd. shares, according to an FWP filing with the Securities and Exchange Commission.

If Transocean stock closes at or above the 75% downside threshold level on a quarterly determination date, investors will receive a contingent payment at an annualized rate of 8.2% to 11.2% for that quarter. The exact quarterly contingent payment will be set at pricing.

If the stock closes at or above the initial level on any of the first 11 quarterly determination dates, the notes will be called at par plus the contingent payment.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the final share price is less than the downside threshold level, in which case the payout will be a number of Transocean shares equal to $10.00 divided by the initial share price or, at the issuer's option, the cash equivalent.

UBS Securities LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.

The notes will price on Nov. 30 and settle on Dec. 5.

The Cusip number is 90269W601.

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