UBS plans contingent income autocallable notes linked to two stocks

By Susanna Moon

Chicago, May 28 - UBS AG, London Branch plans to price contingent income autocallable securities due June 3, 2016 linked to the worst performing of Fifth Third Bancorp shares and PNC Financial Services Group, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

If each stock closes at or above its 70% coupon barrier level on a quarterly determination date, the notes will pay a contingent payment of at an annualized rate of 8.4% to 10.4% for that quarter. The exact contingent quarterly coupon will be set at pricing.

The notes will be redeemed at par plus the contingent coupon if both stocks close at or above their initial levels on any quarterly redemption determination date.

The payout at maturity will be par plus the contingent coupon unless any index finishes below its 70% downside threshold level, in which case investors will be fully exposed to any losses of the worst performing index.

UBS Securities LLC will be the agent. Morgan Stanley Smith Barney LLC will handle distribution.

The notes will price on May 31 and settle on June 5.

The Cusip number is 90271C692.

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