UBS plans airbag phoenix autocallable notes linked to Facebook

By Susanna Moon

Chicago, June 18 – UBS AG, London Branch plans to price airbag phoenix autocallable notes due Dec. 24, 2015 linked to Facebook Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a monthly contingent coupon at an annual rate of 9.3% to 11.3% if Facebook shares close at or above the coupon barrier, 65% of the initial share price, on the observation date for that month.

If the stock closes at or above the initial price on any quarterly autocallable 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 conversion price, 80% of the initial share price, the payout at maturity will be par. Otherwise, investors will receive a number of shares of Facebook stock equal to $1,000 divided by the conversion price.

The exact deal terms will be set at pricing.

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

The notes will price on June 20 and settle on June 25.

The Cusip number is 90273E134.

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