UBS plans quarterly review notes on WTI light sweet crude oil

By Toni Weeks

San Luis Obispo, Calif., Oct. 17 - UBS AG, London Branch plans to price 0% quarterly review notes due Oct. 29, 2014 linked to West Texas Intermediate light sweet crude oil futures contracts as traded on the CME Globex, according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called at par plus an annualized call premium if the closing price of the commodity on any quarterly observation date or the final price of the asset based on the averaging dates is at or above the initial price. The call premium is expected to be 15% and will be determined at pricing.

If the notes are not called, the payout at maturity will be par if the final price is at least 80% of the initial value. Otherwise, investors will be fully exposed to the decline in the commodity price from the initial price.

The final price is the average of the WTI prices on four trading days ending Oct. 24, 2014.

The notes (Cusip: 90270KAM1) are expected to price Oct. 18 and settle Oct. 23.

JPMorgan Chase Bank, NA, J.P. Morgan Securities LLC and UBS Investment Bank are the agents.

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