By Marisa Wong
Madison, Wis., July 6 – UBS AG, London Branch priced $21.39 million of contingent income autocallable securities due June 29, 2018 linked to the common units of Blackstone Group LP, according to a 424B2 filing with the Securities and Exchange Commission.
If Blackstone units close at or above the downside threshold level, 80% of the initial unit price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 9.2%.
The notes will be called at par of $10 plus the contingent coupon if Blackstone units close at or above the initial unit price on any of the first 11 quarterly determination dates.
If the final unit price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of Blackstone units equal to $10 divided by the initial unit price or, at the issuer’s option, a cash amount equal to the value of those units.
UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying units: | Blackstone Group LP (Symbol: BX)
|
| Amount: | $21,385,830
|
| Maturity: | June 29, 2018
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| Coupon: | 9.2% per year, payable quarterly if Blackstone units close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final unit price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, number of Blackstone units equal to $10 divided by initial unit price or, at issuer’s option, equivalent amount in cash
|
| Call: | At par plus contingent coupon if Blackstone units close at or above initial unit price on any quarterly determination date other than final determination date
|
| Initial unit price: | $41.50
|
| Downside threshold: | $33.20, 80% of initial unit price
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| Pricing date: | June 26
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| Settlement date: | July 1
|
| Agent: | UBS Securities LLC
|
| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 2.5%
|
| Cusip: | 90275C102
|
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