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Published on 10/31/2014 in the Prospect News Structured Products Daily.

New Issue: UBS prices $232,000 return optimization notes linked to six stocks

By Angela McDaniels

Tacoma, Wash., Oct. 31 – UBS AG, London Branch priced $232,000 of 0% return optimization securities due Nov. 30, 2015 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes equal weights of Applied Materials, Inc., Autodesk, Inc., Citigroup Inc., Intel Corp., United Rentals, Inc. and Veeco Instruments Inc.

If the basket return is positive, the payout at maturity will be par of $10 plus 300% of the basket return, subject to a 15.75% maximum return. If the basket return is negative, investors will have one-to-one exposure to the decline.

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

Issuer:UBS AG, London Branch
Issue:return optimization securities
Underlying stocks:Applied Materials, Inc., Autodesk, Inc., Citigroup Inc., Intel Corp., United Rentals, Inc. and Veeco Instruments Inc., equally weighted
Amount:$232,000
Maturity:Nov. 30, 2015
Coupon:0%
Price:Par of $10
Payout at maturity:If basket return is positive, par plus 300% of basket return, subject to 15.75% maximum return; if basket return is negative, one-to-one exposure to basket’s decline
Pricing date:Oct. 28
Settlement date:Oct. 31
Underwriter:UBS Financial Services Inc. and UBS Investment Bank
Fees:2%
Cusip:90274B238

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