UBS plans contingent income autocallables linked to Blackstone Group

By Toni Weeks

San Luis Obispo, Calif., March 13 – UBS AG, London Branch plans to price contingent income autocallable securities due March 23, 2018 linked to Blackstone Group LP common units, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment at an annual rate of 10% if the units close at or above the 80% downside threshold level on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if the units close at or above the initial price on any of the first 11 quarterly determination dates.

If the notes are not called, the payout at maturity will be par plus the final coupon unless the units finish below the 80% downside threshold level, in which case investors will receive a number of Blackstone units equal to $10 divided by the initial price or, at the issuer’s option, the cash value of those units.

UBS Securities LLC is the agent with Morgan Stanley Wealth Management handling distribution.

The notes (Cusip: 90274P534) are expected to price March 20 and settle March 25.

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