By Toni Weeks
San Diego, May 2 - UBS AG, London Branch priced $4.92 million of contingent income autocallable securities due May 1, 2015 linked to the common stock of Fifth Third Bancorp, according to an FWP filing with the Securities and Exchange Commission.
If the share price is greater than or equal to the downside threshold level - 70% of the initial price - on a quarterly determination date, investors will receive a contingent payment of $0.3063 for each $10.00 note. Otherwise, no contingent payment will be made for that quarter.
If the share price is greater than or equal to the initial price on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment.
If the notes are not called and the final price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final price is less than the downside threshold level, investors will receive a number of shares of Fifth Third stock equal to $10.00 divided by the initial share price or, at the issuer's option, the cash value of those shares.
UBS Securities LLC is the agent. Distribution will be through Morgan Stanley Smith Barney LLC.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Fifth Third Bancorp. (Symbol: FITB)
|
| Amount: | $4,922,800
|
| Maturity: | May 1, 2015
|
| Contingent payment: | If stock price is greater than or equal to downside threshold level on quarterly determination date, $0.3063 per note; otherwise, no contingent payment that quarter
|
| Price: | Par
|
| Payout at maturity: | If final stock price is greater than or equal to downside threshold level, par plus contingent payment; otherwise, 0.7027 shares per $10 principal amount or, at UBS's option, the value in cash
|
| Call: | Automatically at par plus contingent payment if stock price is greater than or equal to initial share price on any of first 11 quarterly determination dates
|
| Initial price: | $14.23
|
| Downside threshold level: | $9.96, 70% of the initial price
|
| Pricing date: | April 30
|
| Settlement date: | May 3
|
| Agent: | UBS Securities LLC
|
| Distributor: | Morgan Stanley Smith Barney LLC
|
| Fees: | 2.25%, used for selling concessions
|
| Cusip: | 9026M0721
|
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