UBS plans airbag phoenix autocallable notes linked to Chipotle

By Marisa Wong

Madison, Wis., May 21 - UBS AG, London Branch plans to price airbag phoenix autocallable notes due Nov. 30, 2015 linked to the common stock of Chipotle Mexican Grill, Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a monthly contingent coupon at the rate of 7% to 8.8% per year if Chipotle shares close at or above the coupon barrier, 75% of the initial share price, on the observation date for that month. Otherwise, no coupon will be paid for that month.

If the stock closes at or above the initial price on any quarterly autocall observation 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 conversion price, 85% of the initial share price, the payout at maturity will be par. Otherwise, investors will receive a number of shares of Chipotle stock equal to $1,000 divided by the conversion price.

The exact deal terms will be set at pricing.

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

The notes will price on May 28 and settle on May 30.

The Cusip number is 90272X547.

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