By Wendy Van Sickle
Columbus, Ohio, Dec. 13 – UBS AG, London Branch priced $1.06 million of phoenix autocallable notes with memory interest due Dec. 28, 2017 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, if the stock closes at or above its interest barrier, 75% of its initial price, on the observation date for that quarter, the notes will pay a contingent coupon at the rate of 10.3% per year plus any previously unpaid contingent interest payments.
The notes will be automatically called at par plus the contingent interest payment and any previously unpaid contingent interest payments if the stock closes at or above its initial level on any quarterly observation date.
If the notes are not called and the stock finishes at or above its trigger level, 75% of its initial price, the payout at maturity will be par.
Otherwise, investors will receive an amount in cash equal to the product of the share delivery amount of 8.3556 shares multiplied by the final price. The share delivery amount equals the number of shares of the underlying stock equal to $1,000 divided by the initial price.
J.P. Morgan Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Phoenix autocallable notes
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| Underlying stock: | Facebook, Inc.
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| Amount: | $1.06 million
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| Maturity: | Dec. 28, 2017
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| Coupon: | 10.3% annualized rate, plus any previously unpaid coupons, if stock closes at or above barrier level on quarterly observation date
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon and previously unpaid coupons if stock finishes at or above trigger level; otherwise, cash equal to the product of the share delivery amount of 8.3556 shares multiplied by the final price
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| Call: | Automatically at par plus contingent coupon and previously unpaid coupons if stock closes at or above initial level on a quarterly observation date
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| Initial price: | $119.68
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| Barrier/trigger level: | $89.76, 75% of initial price
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| Pricing date: | Dec. 9
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| Settlement date: | Dec. 14
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| Agents: | J.P. Morgan Securities LLC and UBS Investment Bank
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| Fees: | 1%
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| Cusip: | 90270KHN2
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