By Jennifer Chiou
New York, Jan. 28 - UBS AG, London Branch priced $8,660,620 contingent income autocallable securities due Jan. 27, 2017 linked to the American Depositary Shares of Baidu, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Baidu stock closes at or above the 65% barrier level on a quarterly determination date, the notes will pay a contingent payment of 2.85% for that quarter.
If the stock closes at or above the initial share price on any of the first 11 quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below the 65% downside threshold level, in which case the payout will be a number of Baidu shares equal to $10 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 distributor.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Baidu, Inc. (Nasdaq: BIDU)
|
| Amount: | $8,660,620
|
| Maturity: | Jan. 27, 2017
|
| Coupon: | 2.85% per quarter if Baidu ADSs close at or above downside threshold level on review date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If final ADS price is greater than or equal to downside threshold level, par plus contingent payment; otherwise, Baidu shares equal to $10 divided by the initial share price
|
| Call: | At par plus contingent payment if shares close at or above initial price on any of first 11 quarterly determination dates
|
| Initial share price: | $161.37
|
| Downside threshold: | $104.89, 65% of initial share price
|
| Pricing date: | Jan. 24
|
| Settlement date: | Jan. 29
|
| Agent: | UBS Securities LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 2.25%
|
| Cusip: | 90271T448
|
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