By Toni Weeks
San Luis Obispo, Calif., Feb. 12 - UBS AG, London Branch priced $10 million of worst-of fixed-coupon autocallable securities due May 12, 2014 linked to the American Depositary Shares of Baidu, Inc. and the common stock of Tesla Motors, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate is 23% per year, payable monthly.
The notes will be called at par of $10 if both stocks close at or above their initial prices on March 7, April 7 and May 7.
A barrier event will occur if either stock closes below its downside threshold price, 65% of its initial share price, on any day during the life of the notes and the final price of either stock is less than its initial share price.
If a barrier event does not occur, the payout at maturity will be par. If a barrier event does occur, investors will receive a number of shares of the worst-performing stock equal to $10 divided by that stock's initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | UBS AG, London Branch
|
| Issue: | Worst-of fixed-coupon autocallable securities
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| Underlying stocks: | Baidu, Inc. (Symbol: BIDU) and Tesla Motors, Inc. (Symbol: TSLA)
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| Amount: | $10 million
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| Maturity: | May 12, 2014
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| Coupon: | 23%, payable monthly
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par unless either stock closes below downside threshold price on any day during life of notes and final price of either stock is less than initial share price, in which case number of shares of worst-performing stock equal to $10 divided by that stock's initial share price or cash amount equal to value of those shares
|
| Call: | Automatically at par if both stocks close at or above their initial prices on March 7, April 7 and May 7
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| Initial share prices: | $161.14 for Baidu and $186.53 for Tesla
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| Downside thresholds: | $104.74 for Baidu and $121.24 for Tesla; 65% of initial share prices
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| Pricing date: | Feb. 7
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| Settlement date: | Feb. 12
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| Agent: | UBS Securities LLC
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| Distribution: | Morgan Stanley Smith Barney LLC
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| Fees: | 1%
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| Cusip: | 90271T737
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