UBS to price one-year call spread warrants linked to stock basket

By Angela McDaniels

Tacoma, Wash., Oct. 23 – UBS AG, London Branch plans to price European-style, cash-settled call warrants expiring Nov. 9, 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 warrants have a notional amount of $1,000 each and will sell for $47 each, or 4.7% of the notional amount. The minimum purchase requirement is 22 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 Nov. 13, 2015.

The basket return must be greater than 4.7% 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.

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

The warrants will price Oct. 24 and settle Oct. 29.

The Cusip number is 90274B634.

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