UBS plans to price contingent income autocallables linked to indexes

By Angela McDaniels

Tacoma, Wash., Jan. 8 – UBS AG, London Branch plans to price contingent income autocallable securities due Jan. 27, 2022 linked to the worst performing of the Euro Stoxx 50 index, the MSCI Emerging Markets index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 12% per year if each index closes at or above its coupon barrier level, 75% of its initial level, on the determination date for that quarter.

If each index closes at or above its initial level on any quarterly redemption determination date other than the final determination date, the notes will be automatically redeemed at par of $10 plus the contingent coupon.

If the notes are not called and each index finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the worst-performing index from its initial level.

UBS Securities LC is the underwriter. Morgan Stanley Smith Barney LLC is agent.

The notes are expected to price Jan. 23 and settle Jan. 28.

The Cusip number is 90274F635.

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