UBS plans trigger step performance notes tied to currencies versus yen

By Angela McDaniels

Tacoma, Wash., Sept. 20 - UBS AG, Jersey Branch plans to price 0% trigger step performance securities due Sept. 29, 2014 linked to the performance of a basket of currencies relative to the Japanese yen, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights of the Australian dollar, the Brazilian real, the Canadian dollar and the U.S. dollar. The basket return will be positive if the basket currencies have strengthened relative to the yen overall.

If the basket return is zero or positive, the payout at maturity will be par of $10 plus the greater of the step return and the basket return. The step return is expected to be 17% to 20% and will be set at pricing.

If the basket return is negative and the final basket level is greater than or equal to the trigger level, the payout will be par. The trigger level will be 85% of the initial basket level.

If the basket return is negative and the final basket level is less than the trigger level, investors will be fully exposed to the basket's decline from its initial level.

The notes are expected to price Sept. 25 and settle Sept. 28.

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

The Cusip number is 902669480.

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