By Marisa Wong
Morgantown, W.Va., Jan. 31 – UBS AG, London Branch priced $9.23 million of contingent income autocallable securities due Jan. 30, 2020 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Bank of America shares close at or above the downside threshold level, 70% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 9.6%.
The notes will be called at par of $10 plus the contingent coupon if Bank of America shares close at or above the initial share price on any of the first 11 quarterly determination dates.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a cash payment equal to the exchange ratio – par of $10 divided by the initial share price – multiplied by the final share price.
UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Bank of America Co. (Symbol: BAC)
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| Amount: | $9,226,640
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| Maturity: | Jan. 30, 2020
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| Coupon: | 9.6% per year, payable each quarter that Bank of America shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, cash payment equal to the exchange ratio – par of $10 divided by the initial share price – multiplied by the final share price
|
| Call: | At par plus contingent coupon if Bank of America shares close at or above initial share price on any of first 11 quarterly determination dates
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| Initial share price: | $23.36
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| Downside threshold: | $17.52, 75% of initial share price
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| Pricing date: | Jan. 27
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| Settlement date: | Feb. 1
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| Agent: | UBS Securities LLC
|
| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 2.5%
|
| Cusip: | 90280M475
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