New Issue: UBS prices $535,000 call spread warrants linked to stock basket

By Angela McDaniels

Tacoma, Wash., Oct. 7 – UBS AG, London Branch priced $535,000 of European-style, cash-settled call warrants expiring Oct. 19, 2015 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes equal weights of Cabot Oil & Gas Corp., Continental Resources, Inc., Cummins Inc., Eastman Chemical Co., Enterprise Products Partners LP, EOG Resources, Inc., Halliburton Co., LyondellBasell Industries NV, MarkWest Energy Partners, LP, National Oilwell Varco, Inc., Nucor Corp., Pioneer Natural Resources Co., Plains All American Pipeline, LP, Schlumberger Ltd. and Weatherford International plc.

The 10,700 warrants have a notional amount of $1,000 each, or $10.7 million in total, and sold for $50 each, or 5% of the notional amount. The minimum purchase requirement is 20 warrants.

The warrants will be automatically exercised on the expiration date if the basket's final level is greater than the initial basket level. The cash settlement amount will be $1,000 multiplied by the lesser of (a) the basket return and (b) 10%. The cash settlement payment date is Oct. 22, 2015.

The basket return must be greater than 5% for investors to receive a positive return on their initial investments.

If the basket's final level is equal to or less than the initial basket level, the warrants will expire worthless and investors will lose their entire initial investments in the warrants.

UBS Investment Bank is the underwriter, and J.P. Morgan Securities LLC is the agent.

Issuer:	UBS AG, London Branch
Issue:	Call spread warrants
Underlying stocks:	Cabot Oil & Gas Corp., Continental Resources, Inc., Cummins Inc., Eastman Chemical Co., Enterprise Products Partners LP, EOG Resources, Inc., Halliburton Co., LyondellBasell Industries NV, MarkWest Energy Partners, LP, National Oilwell Varco, Inc., Nucor Corp., Pioneer Natural Resources Co., Plains All American Pipeline, LP, Schlumberger Ltd. and Weatherford International plc, equally weighted
Warrants:	10,700
Notional amount:	$1,000 each, or $10.7 million total
Price:	$50 each, or $535,000 total
Expiration date:	Oct. 19, 2015
Cash settlement date:	Oct. 22, 2015
Payout:	If basket's final level is greater than initial basket level, $1,000 multiplied by lesser of (a) basket return and (b) 10%; if basket's final level is equal to or less than initial basket level, nothing
Pricing date:	Oct. 3
Settlement date:	Oct. 8
Underwriter:	UBS Investment Bank
Agent:	J.P. Morgan Securities LLC
Fees:	$3.00 per warrant
Cusip:	90274B147

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