By Devika Patel
Knoxville, Tenn., May 26 – UBS AG, London Branch priced $3.56 million of trigger autocallable contingent yield notes due May 22, 2020 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 7% per year if Facebook shares close at or above the coupon barrier level, 69.25% of the initial share price, on the observation date for that quarter.
Beginning Nov. 22, 2017, the notes will be automatically called at par of $10 if Facebook shares close at or above the initial share price on any observation date other than the final one.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, 69.25% of the initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying stock: | Facebook, Inc. (Symbol: FB)
|
| Amount: | $3,563,800
|
| Maturity: | May 22, 2020
|
| Contingent coupon: | 7%, payable quarterly if stock closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par unless stock finishes below downside threshold level, in which case 1% loss for each 1% decline from initial level
|
| Call: | Beginning Nov. 22, 2017, automatically at par if stock closes at or above initial level on any quarterly observation date other than the final one
|
| Initial price: | $148.06
|
| Coupon barrier: | $102.53, 69.25% of initial price
|
| Downside threshold: | $102.53, 69.25% of initial price
|
| Pricing date: | May 19
|
| Settlement date: | May 24
|
| Agents: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 2%
|
| Cusip: | 90280V459
|
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