By Angela McDaniels
Tacoma, Wash., Feb. 25 - UBS AG, London Branch priced $790,000 of 0% phoenix autocallable notes due March 11, 2015 linked to the common stock of Cummins Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 9.6% per year if Cummins 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 be exposed to any losses.
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
|
| Issue: | Phoenix autocallable notes
|
| Underlying stock: | Cummins Inc. (Symbol: CMI)
|
| Amount: | $790,000
|
| Maturity: | March 11, 2015
|
| Coupon: | 9.6%, payable quarterly if stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if Cummins shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | Automatically at par plus contingent coupon if Cummins shares close at or above initial price on any quarterly observation date
|
| Initial share price: | $142.83
|
| Final share price: | Average of stock's closing prices on five trading days ending March 6, 2015
|
| Trigger price: | $114.26, 80% of initial price
|
| Pricing date: | Feb. 21
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| Settlement date: | Feb. 26
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| Underwriter: | UBS Investment Bank with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents
|
| Fees: | 1%
|
| Cusip: | 90270KBA6
|
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