UBS to price contingent income autocallables linked to Transocean

By Angela McDaniels

Tacoma, Wash., March 12 - UBS AG, London Branch plans to price contingent income autocallable securities due March 18, 2016 linked to the common stock of Transocean Ltd., according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment at an annualized rate of 8% to 10% if Transocean shares close at or above the downside threshold level, 70% of the initial share price, on the determination date for that quarter.

The notes will be called at par of $10 plus the contingent payment if Transocean shares close at or above the call threshold level on any of the determination dates other than the last one. The call threshold level will be 95% of the initial share price in year one, 90% of the initial share price in year two and 85% of the initial share price in year three.

If Transocean shares finish at or above the downside threshold level, the payout at maturity will be par plus the contingent payment. Otherwise, investors will receive a number of Transocean shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent of those shares.

UBS Securities LLC is the agent.

The notes are expected to price March 15 and settle March 20.

The Cusip number is 90271B751.

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