By Susanna Moon
Chicago, Jan. 7 - UBS AG, London Branch priced $2.99 million contingent income autocallable securities due Jan. 6, 2017 linked to Bank of America Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Bank of America stock closes at or above the 85% barrier level on a quarterly determination date, the notes will pay a contingent payment at an annual rate of 11.1% for that quarter.
If the stock closes at or above the initial share price on any of the first 11 quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below the 85% downside threshold level, in which case the payout will be a number of Bank of America shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.
UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC is the dealer.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Bank of America Corp. (Symbol: BAC)
|
| Amount: | $2,991,500
|
| Maturity: | Jan. 6, 2017
|
| Coupon: | 11.1% annualized for each quarter that Bank of America shares close at or above downside threshold level on quarterly review date
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus contingent payment; otherwise, a number of Bank of America shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent
|
| Call: | At par plus contingent payment if shares close at or above initial price on any of first 11 quarterly determination dates
|
| Initial share price: | $16.41
|
| Downside threshold: | $13.95, 85% of initial share price
|
| Pricing date: | Jan. 3
|
| Settlement date: | Jan. 8
|
| Agent: | UBS Securities LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 2.25%
|
| Cusip: | 90271R889
|
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