UBS plans contingent income autocallable notes linked to Palo Alto

By Toni Weeks

San Luis Obispo, Calif., June 26 – UBS AG, London Branch plans to price contingent income autocallable securities due July 6, 2018 linked to Palo Alto Networks, Inc. shares, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon of 10.2% per year if Palo Alto stock closes at or above the 75% downside threshold level on the determination date for that quarter.

The notes will be called at par plus the contingent coupon if the stock closes at or above its initial price on any of the first 11 determination dates.

If the notes are not called and Palo Alto stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent payment.

Otherwise, investors will receive a number of shares of Palo Alto stock equal to $10 divided by the initial share price or, at the issuer’s option, the cash value of those shares.

UBS Securities LLC is the agent with Morgan Stanley Wealth Management handling distribution.

The notes will price July 2 and settle July 8.

The Cusip number is 90275C227.

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