By Toni Weeks
San Luis Obispo, Calif., March 4 - UBS AG, London Branch priced $4.08 million of contingent income autocallable securities due March 3, 2016 linked to the common stock of Mosaic Co., according to a 424B2 filing with the Securities and Exchange Commission.
If Mosaic shares close at or above the downside threshold level - 75% of the initial share price - on a quarterly determination date, investors will receive a contingent payment of $0.2575 for each $10.00 note. Otherwise, no contingent payment will be made for that period. The contingent payment is equivalent to 10.3% per year.
If the closing share price is greater than or equal to the initial share price on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final price is less than the downside threshold level, the payout will be a number of Mosaic shares equal to $10.00 divided by the initial share price or, at the issuer's option, an equivalent cash amount.
UBS Securities LLC is the agent. Distribution is through Morgan Stanley Smith Barney LLC.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Mosaic Co. (Symbol: MOS)
|
| Amount: | $4.08 million
|
| Maturity: | March 3, 2016
|
| Contingent payment: | If Mosaic shares close at or above downside threshold on quarterly determination date, $0.2575 per note; otherwise, no contingent payment for that period
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to initial price, par plus $0.2575; if final share price is less than downside threshold, $10 divided by initial share price or, at issuer's option, cash amount equal to value of those shares
|
| Call: | Automatically at par plus $0.2575 if closing share price is greater than or equal to call threshold level on any of first 11 quarterly determination dates
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| Initial share price: | $58.54
|
| Downside threshold: | $43.91, 75% of initial share price
|
| Pricing date: | Feb. 28
|
| Settlement date: | March 5
|
| Agent: | UBS Securities LLC
|
| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 2.25%
|
| Cusip: | 90271B611
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