By Marisa Wong
Madison, Wis., May 29 - UBS AG, London Branch priced $665,000 of 0% phoenix autocallable notes due June 10, 2015 linked to the common stock of Pioneer Natural Resources Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 13.3% per year if Pioneer 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, 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 lose 1% for every 1% that the final share price is less than the initial share price.
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
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Issue: | Phoenix autocallable notes
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Underlying stock: | Pioneer Natural Resources Co. (Symbol: PXO)
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Amount: | $665,000
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Maturity: | June 10, 2015
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Coupon: | 13.3%, payable quarterly if stock closes at or above trigger price on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par plus contingent coupon if Pioneer shares finish at or above trigger price; otherwise, par plus stock return
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Call: | Automatically at par plus contingent coupon if Pioneer shares close at or above initial price on any quarterly observation date
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Initial share price: | $202.31
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Final share price: | Average of stock's closing prices on five trading days ending June 5, 2015
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Trigger price: | $161.85, 80% of initial price
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Pricing date: | May 23
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Settlement date: | May 29
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Underwriter: | UBS Investment Bank
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Agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
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Fees: | 1%
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Cusip: | 90270KBV0
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