UBS plans trigger autocallable contingent yield notes tied to Broadcom

By Angela McDaniels

Tacoma, Wash., June 27 – UBS AG, London Branch plans to price trigger autocallable contingent yield notes due July 1, 2021 linked to the ordinary shares of Broadcom Ltd., according to a 424B2 filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon at the rate of 9% per year if Broadcom shares close at or above the downside threshold level, 60% to 68% of the initial share price, on the observation date for that month. The exact downside threshold level will be set at pricing.

After a year, the notes will be automatically called at par of $10 if Broadcom shares close at or above the initial share price on any monthly observation date.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

UBS Financial Services Inc. and UBS Investment Bank are the agents.

The notes will price June 28.

The Cusip number is 90275R802.

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