UBS to price trigger phoenix autocallables linked to Facebook

By Angela McDaniels

Tacoma, Wash., Dec. 16 – UBS AG, London Branch plans to price trigger phoenix autocallable optimization securities due June 23, 2017 linked to the common stock of Facebook, Inc., according to an FWP filing with the Securities and Exchange Commission.

If Facebook stock closes at or above the trigger price, 70% of the initial share price, on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 10.3% to 12.3% per year. Otherwise, no coupon will be paid that quarter. The exact contingent coupon rate will be set at pricing.

If the shares close at or above the initial price on a quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called and Facebook shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.

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

The notes will price Dec. 18.

The Cusip number is 90275L250.

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