New Issue: UBS prices $2.81 million contingent income autocallables linked to Fifth Third, PNC

By Toni Weeks

San Luis Obispo, Calif., March 4 - UBS AG, London Branch priced $2.81 million of contingent income autocallable securities due March 3, 2016 linked to the common stock of Fifth Third Bancorp and PNC Financial Services Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

If both Fifth Third and PNC shares close at or above their downside threshold levels - 70% of the respective initial share price - on a quarterly determination date, investors will receive a contingent payment of $0.2525 for each $10.00 note. Otherwise, no contingent payment will be made for that period. The contingent payment is equivalent to 10.1% per year.

If the closing share price of each underlying stock is greater than or equal to its initial share 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 share price of each underlying stock 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 of either stock is less than the downside threshold level, the payout will be a number of shares of the least-performing stock equal to $10.00 divided by the initial share price or, at the issuer's option, an equivalent cash amount.

UBS Securities LLC is the agent. Distribution is through Morgan Stanley Smith Barney LLC.

Issuer:	UBS AG, London Branch
Issue:	Contingent income autocallable securities
Underlying stocks:	Fifth Third Bancorp (Symbol: FITB) and PNC Financial Services Group, Inc. (Symbol: PNC)
Amount:	$2,806,000
Maturity:	March 3, 2016
Contingent payment:	If both Fifth Third and PNC shares close at or above downside threshold on quarterly determination date, $0.2525 per note; otherwise, no contingent payment for that period
Price:	Par of $10.00
Payout at maturity:	If final share price or both underlying stocks is greater than or equal to initial price, par plus $0.2525; if final share price of either stock is less than downside threshold, $10 divided by initial share price of least-performing stock or, at issuer's option, cash amount equal to value of those shares
Call:	Automatically at par plus $0.2525 if closing share price of both underlying stocks is greater than or equal to their respective initial price on any of first 11 quarterly determination dates
Initial share price:	$15.84 for Fifth Third, $62.39 for PNC
Downside threshold:	$11.09 for Fifth Third, $43.67 for PNC, 70% of initial share price
Pricing date:	Feb. 28
Settlement date:	March 5
Agent:	UBS Securities LLC
Distribution:	Morgan Stanley Smith Barney LLC
Fees:	2.25%
Cusip:	90271B637

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.