UBS plans contingent income autocallables linked to United Continental

By Toni Weeks

San Luis Obispo, Calif., Jan. 30 – UBS AG, London Branch plans to price contingent income autocallable securities due Feb. 11, 2016 linked to United Continental Holdings, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment at an annual rate of 10.8% if the shares close at or above the 65% downside threshold level on the observation date for that quarter.

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

If the notes are not called, the payout at maturity will be par plus the final coupon unless the shares finish below the 65% downside threshold level, in which case investors will receive a number of United Continental shares equal to $10 divided by the initial 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 (Cusip: 90274F825) are expected to price Feb. 6 and settle Feb. 11.

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