UBS plans phoenix autocallable optimization notes linked to Citigroup

By Angela McDaniels

Tacoma, Wash., Dec. 1 - UBS AG, London Branch plans to price phoenix autocallable optimization securities with contingent protection due Dec. 13, 2011 linked to the common stock of Citigroup Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will carry a contingent coupon of 12.75% to 15.75% per year. Interest, if any, will be payable quarterly. The coupon will only be paid if Citigroup stock closes at or above the coupon barrier - 80% of the initial share price - on the observation date for that quarter.

If Citigroup stock closes at or above its initial share price on a quarterly observation date, the notes will be called and investors will receive par plus the contingent coupon payment.

If the notes are not called and the final share price is greater than or equal to the coupon barrier, the payout at maturity will be par plus the final contingent coupon payment. Otherwise, the payout will be par plus the share return, which will be negative.

The notes (Cusip 90267F295) are expected to price Dec. 6 and settle Dec. 9.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.