By Tali Rackner
Minneapolis, June 7 – UBS AG, London Branch priced $2.61 million of contingent income autocallable securities due June 5, 2020 linked to the common units of Blackstone Group LP, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.5% if the shares close at or above the 80% downside threshold on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the shares close at or above the initial price on any of the first 11 determination dates.
The payout at maturity will be par plus the contingent coupon unless the stock finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.
UBS Securities LLC is the underwriter with Morgan Stanley Wealth Management handling distribution.
| Issuer: | UBS AG, London Branch
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Blackstone Group LP (Symbol: BX)
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| Amount: | $2,611,670
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| Maturity: | June 5, 2020
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| Coupon: | 9.5% per year, payable quarterly if shares close at or above 80% downside threshold on determination date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par unless stock finishes below 80% downside threshold, in which case 1% loss for each 1% decline
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| Call: | At par plus contingent coupon if shares close at or above initial level on any of the first 11 determination dates
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| Initial share price: | $33.69
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| Downside threshold: | $26.95, 80% of initial price
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| Pricing date: | June 2
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| Settlement date: | June 7
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| Agent: | UBS Securities LLC
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 2.5%
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| Cusip: | 90280V533
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