UBS plans contingent income autocallables linked to three indexes

By Marisa Wong

Madison, Wis., May 1 - UBS AG, London Branch plans to price contingent income autocallable securities due May 18, 2018 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If each index closes at or above its coupon barrier level, 75% of the initial index level, on a quarterly determination date, the notes will pay a contingent payment at an annualized rate of 8.5% for that quarter.

The notes will be redeemed at par plus the contingent coupon if all of the indexes close at or above their initial levels on any of the first 19 quarterly redemption determination dates.

The payout at maturity will be par plus the contingent coupon, if any, unless any index finishes below its downside threshold level, 55% of its initial level, in which case investors will be fully exposed to any losses of the worst performing index.

UBS Securities LLC will be the agent. Morgan Stanley Smith Barney LLC will handle distribution.

The notes will price on May 15 and settle on May 20.

The Cusip number is 90271C411.

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