By Jennifer Chiou
New York, March 20 - UBS AG, London Branch priced $2,314,000 of contingent income autocallable securities due March 18, 2016 linked to the common stock of Transocean Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly payment at an annualized rate of 8.15% 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.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Transocean Corp. (Symbol: RIG)
|
| Amount: | $2,314,000
|
| Maturity: | March 18, 2016
|
| Contingent payment: | 8.15% per year, payable quarterly if Transocean stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus contingent payment; otherwise, Transocean shares equal to $10 divided by the initial share price or cash equivalent
|
| Call: | Automatically at par plus contingent payment if closing share price is greater than or equal to call threshold level on any of the determination dates other than last one; call threshold level 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
|
| Initial share price: | $37.49
|
| Downside threshold: | $53.56, 70% of initial share price
|
| Pricing date: | March 15
|
| Settlement date: | March 20
|
| Agent: | UBS Securities LLC
|
| Fees: | 2.25%
|
| Cusip: | 90271B751
|
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