UBS plans trigger phoenix autocallable securities linked to Valero

By Jennifer Chiou

New York, July 31 – UBS AG, London Branch plans to price trigger phoenix autocallable optimization securities due Aug. 7, 2019 linked to Valero Energy Corp. shares, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 8% if Valero stock closes at or above the trigger level – 67% to 73% of the initial share price – on the observation date for that month.

The notes will be called at par plus the contingent coupon if the shares close at or above the initial price on a monthly observation date after one year.

The payout at maturity will be par plus the contingent coupon unless Valero stock finishes below the trigger level, in which case investors will be fully exposed to any losses.

The notes (Cusip: 90273E787) are expected to price on Aug. 1 and settle on Aug. 6.

UBS Financial Services Inc. and UBS Investment Bank are the underwriters.

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