UBS plans phoenix autocallable notes with memory coupon on Facebook

By Sarah Lizee

Olympia, Wash., April 17 – UBS AG London Branch plans to price phoenix autocallable notes with memory coupon due May 5, 2020 linked to Facebook, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

If the stock closes at or above the barrier level, 80% of the initial level, on a quarterly observation date, the notes will pay a contingent coupon for that quarter at the rate of 13.15%, plus any previously unpaid contingent interest payments.

The notes will be called at par plus the coupon if Facebook shares close at or above the initial share price on any quarterly observation date other than the final date beginning on Aug. 1.

The payout at maturity will be par plus the final coupon and any previously unpaid coupons unless the stock finishes below the 80% trigger level, in which case investors will lose 1% for each 1% decline of the stock from its initial level.

UBS Investment Bank and J.P. Morgan Securities LLC are the agents.

The notes (Cusip: 90270KB32) are expected to price on April 18.

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