UBS to price five-year trigger phoenix autocallables linked to FedEx

By Toni Weeks

San Diego, Sept. 25 - UBS AG, London Branch plans to price trigger phoenix autocallable optimization securities due Sept. 29, 2017 linked to the common stock of FedEx Corp., according to an FWP filing with the Securities and Exchange Commission.

If FedEx stock closes at or above the trigger price - 75% of the initial share price - on a monthly observation date, the issuer will pay a contingent coupon for that month at the rate of 6% to 8% per year. Otherwise, no coupon will be paid that month. The exact contingent coupon will be set at pricing.

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

If the notes are not called and FedEx 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.

The notes (Cusip: 90269V538) are expected to price Sept. 26 and settle Sept. 28.

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

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