By Wendy Van Sickle
Columbus, Ohio, April 10 – UBS AG, London Branch priced $2.05 million of contingent income autocallable securities due April 4, 2018 linked to the common stock of Barrick Gold Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.5% if the shares close at or above the 65% downside threshold level on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the shares close at or above the initial price on any of the first three coupon determination dates.
The payout at maturity will be par plus the final coupon unless the shares finish below the downside threshold level, in which case investors will lose 1% for each 1% decline of the stock from its initial level.
UBS Securities LLC is the underwriter with Morgan Stanley Smith Barney LLC handling distribution.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Barrick Gold Corp.
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| Amount: | $2,045,500
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| Maturity: | April 4, 2018
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| Coupon: | 9.5% per year, payable quarterly if 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, 1% loss for every 1% that final share price is less than initial share price
|
| Call: | At par plus contingent coupon if shares close at or above initial share price on any of the first three coupon determination dates
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| Initial share price: | 18.99
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| Downside threshold: | $12.34, 65% of initial share price
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| Pricing date: | March 31
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| Settlement date: | April 5
|
| Agent: | UBS Securities LLC
|
| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 1.75%
|
| Cusip: | 90280M848
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