By Angela McDaniels
Tacoma, Wash., Sept. 16 - UBS AG, London Branch priced $10 million of worst-of income autocallable securities due Dec. 17, 2013 linked to the common stocks of Facebook, Inc. and Tesla Motors, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate is 18% per year, payable monthly.
The notes will be called at par of $10 if both stocks close at or above their initial prices on Oct. 15 or Nov. 12.
If the notes are not called and each stock finishes at or above its downside threshold price, 65% of its initial share price, the payout at maturity will be par. Otherwise, investors will receive a number of shares of the worst-performing stock equal to $10 divided by that stock's initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | UBS AG, London Branch
|
| Issue: | Worst-of income autocallable securities
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| Underlying stocks: | Facebook, Inc. (Symbol: FB) and Tesla Motors, Inc. (Symbol: TSLA)
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| Amount: | $10 million
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| Maturity: | Dec. 17, 2013
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| Coupon: | 18%, payable monthly
|
| Price: | Par of $10
|
| Payout at maturity: | Par if each stock finishes at or above downside threshold price; otherwise, number of shares of worst-performing stock equal to $10 divided by that stock's initial share price or cash amount equal to value of those shares
|
| Call: | Automatically at par if both stocks close at or above their initial prices on Oct. 15 or Nov. 12
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| Initial share prices: | $44.75 for Facebook and $164.93 for Tesla
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| Downside thresholds: | $29.09 for Facebook and $107.20 for Tesla; 65% of initial share prices
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| Pricing date: | Sept. 12
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| Settlement date: | Sept. 17
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| Agent: | UBS Securities LLC
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| Distribution: | Morgan Stanley Smith Barney LLC
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| Fees: | 1%
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| Cusip: | 90271M393
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