By Toni Weeks
San Luis Obispo, Calif., July 18 – UBS AG, London Branch priced $500,000 of 0% phoenix autocallable notes due Aug. 4, 2015 linked to the common stock of American Eagle Outfitters, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 23.8% per year if American Eagle shares close at or above the trigger price, 80% of the initial share price, on the observation date for that quarter. Otherwise, no coupon will be paid for that quarter.
If the stock closes at or above the initial price on any quarterly observation date other than the final review date, the notes will be called at par plus the contingent coupon.
If the notes are not called and the shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will receive a number of American Eagle shares equal to $1,000 divided by the initial stock price or, at the issuer’s option, the cash value of those shares.
UBS Investment Bank is the underwriter with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Phoenix autocallable notes
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| Underlying stock: | American Eagle Outfitters, Inc. (Symbol: AEO)
|
| Amount: | $500,000
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| Maturity: | Aug. 4, 2015
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| Coupon: | 23.8% per year, payable quarterly if stock closes at or above barrier level on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus contingent coupon if American Eagle shares finish at or above trigger price; otherwise, 95.2381 shares or, at issuer’s option, equivalent cash value
|
| Call: | At par plus contingent coupon if American Eagle shares close at or above initial price on any quarterly observation date other than final date
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| Initial share price: | $10.50
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| Barrier/trigger price: | $8.40, 80% of initial share price
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| Pricing date: | July 16
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| Settlement date: | July 21
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| Underwriter: | UBS Investment Bank
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| Agents: | J.P Morgan Securities LLC and JPMorgan Chase Bank, NA
|
| Fees: | 1%
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| Cusip: | 90270KCW7
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