UBS plans contingent absolute return autocallables on Facebook

By Marisa Wong

Madison, Wis., Dec. 15 – UBS AG, London Branch plans to price 0% contingent absolute return autocallable optimization securities due Dec. 28, 2015 linked to Facebook, Inc. shares, according to an FWP with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call premium of 9% to 12.1% if Facebook shares close at or above the initial price on any quarterly observation date. The exact call premium will be set at pricing.

If the notes are not called and the final share price is greater than or equal to the trigger price, 75% of the initial price, the payout at maturity will be par plus the absolute value of the stock return. Otherwise, investors will be fully exposed to the stock decline.

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

The notes will price on Dec. 19 and settle on Dec. 24.

The Cusip number is 90274F387.

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