By Susanna Moon
Chicago, April 15 – UBS AG, London Branch priced $7.72 million of contingent income autocallable securities due April 13, 2018 linked to Blackstone Group LP shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.65% if the stock closes at or above its 80% barrier level on the observation date for that quarter.
The notes will be redeemed at par plus the contingent payment if the stock closes at or above the redemption level on any of the first 11 determination dates.
The call level will be 105% of the initial price until April 11, 2016, stepping up to 110% of the initial price from April 11, 2016 through April 10, 2017 and to 115% of the initial price after that.
The payout at maturity will be par plus the final coupon unless the stock finishes below its 80% barrier level, in which case investors will receive a number of Blackstone shares equal to $10 divided by the initial share price or, at the issuer’s option, the cash equivalent.
UBS Securities LLC is the agent 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: )
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Amount: | $7,716,310
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Maturity: | April 13, 2018
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Coupon: | 10.65% annualized for each quarter that stock closes at or above barrier level on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par plus final coupon unless the stock finishes below barrier level, in which case number of Blackstone shares equal to $10 divided by initial share price or, at issuer’s option, cash value of those shares
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Call: | At par plus contingent payment if the stock closes at or above redemption level on any of the first 11 determination dates
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Initial level: | $40.02
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Barrier level: | $32.02, 80% of initial level
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Call level: | 105% of initial price until April 11, 2016, 110% of initial price from April 11, 2016 through April 10, 2017 and 115% of initial price after that
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Pricing date: | April 10
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Settlement date: | April 15
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Agent: | UBS Securities LLC with Morgan Stanley Wealth Management handling distribution
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Fees: | 2.5%
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Cusip: | 90274P815
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