By Toni Weeks
San Luis Obispo, Calif., Nov. 12 – UBS AG, London Branch priced $959,000 of airbag phoenix autocallable optimization securities due May 13, 2016 linked to the common units of Blackstone Group LP, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 8.4% per year if Blackstone units close at or above the coupon barrier, 75% of the initial price, on the observation date for that month.
The notes will be automatically called at par if Blackstone units close at or above the initial price on any autocall observation date, which occur quarterly.
If the notes are not called and the final price of Blackstone units is greater than or equal to the conversion price, 85% of the initial price, the payout at maturity will be par. Otherwise, investors will receive a number of Blackstone units equal to $1,000 divided by the conversion price.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Airbag phoenix autocallable optimization securities
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| Underlying stock: | Blackstone Group LP (Symbol: BX)
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| Amount: | $959,000
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| Maturity: | May 13, 2016
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| Coupon: | 8.4% annualized for each month Blackstone units close at or above coupon barrier on observation date for that month
|
| Price: | Par
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| Payout at maturity: | If final price is greater than or equal to conversion price, par; otherwise, 37.7786 Blackstone units
|
| Call: | At par if Blackstone units close at or above initial price on any quarterly autocall observation date
|
| Initial price: | $31.14
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| Coupon barrier: | $23.36, 75% of initial price
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| Conversion price: | $26.47, 85% of initial price
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| Pricing date: | Nov. 7
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| Settlement date: | Nov. 13
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
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| Cusip: | 90274B865
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