By Toni Weeks
San Luis Obispo, Calif., April 15 - UBS AG, London Branch priced $2.43 million of airbag phoenix autocallable optimization securities due Oct. 19, 2015 linked to the common stock of Valero Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 11.6% per year if Valero Energy shares close at or above the coupon barrier, 75% of the initial share price, on the observation date for that month.
The notes will be automatically called at par if Valero Energy shares close at or above the initial share price on any quarterly autocall observation date.
If the notes are not called and the final price of Valero Energy shares is greater than or equal to the conversion price, 85% of the initial share price, then the payout at maturity will be par. Otherwise, investors will receive a number of Valero Energy shares equal to $1,000 divided by the conversion price.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Airbag phoenix autocallable optimization securities
|
| Underlying stock: | Valero Energy Corp. (Symbol: VLO)
|
| Amount: | $2,428,000
|
| Maturity: | Oct. 19, 2015
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| Coupon: | Each month, notes pay contingent coupon at rate of 11.6% per year if Valero Energy shares close at or above coupon barrier on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to conversion price, par; otherwise, 23.084 Valero Energy shares per $1,000 note
|
| Call: | Automatically at par if Valero Energy shares close at or above initial share price on any quarterly autocall observation date
|
| Initial share price: | $50.96
|
| Coupon barrier: | $38.22, 75% of initial share price
|
| Conversion price: | $43.32, 85% of initial share price
|
| Pricing date: | April 11
|
| Settlement date: | April 17
|
| Agents: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
|
| Cusip: | 90272V749
|
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