By Toni Weeks
San Luis Obispo, Calif., Oct. 22 - UBS AG, London Branch priced $10.57 million of 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 a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par plus an annualized call premium of 15% 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.
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.
JPMorgan Chase Bank, NA, J.P. Morgan Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Quarterly review notes
|
| Underlying asset: | West Texas Intermediate light sweet crude oil futures contracts
|
| Amount: | $10,573,000
|
| Maturity: | Oct. 29, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par if final level is at least barrier level; full exposure to losses if price drops below barrier level
|
| Call: | At par plus 15% per year if closing price on any quarterly observation date or if final price based on averaging dates is at or above initial price
|
| Initial level: | $100.81
|
| Final level: | Average of closing prices on five trading days ending Oct. 24, 2014
|
| Barrier level: | 80% of initial price
|
| Pricing date: | Oct. 18
|
| Settlement date: | Oct. 23
|
| Agents: | JPMorgan Chase Bank, NA, J.P. Morgan Securities LLC and UBS Investment Bank Fees: | 1%
|
| Cusip: | 90270KAM1
|
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