UBS plans 0.125% callable exchangeable securities tied to six stocks

By Toni Weeks

San Diego, March 4 - UBS AG, London Branch plans to price 0.125% callable exchangeable securities due March 15, 2016 linked to a basket of six common stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the common stocks of Apple Inc., Blackstone Group LP and Finisar Corp., each with a 12.5% weight; BorgWarner Inc., with a 17.5% weight; Priceline.com Inc., with a 30% weight; and Schlumberger Ltd., with a 15% weight.

The issue price of each security is equal to 110% of par.

Interest is payable semiannually.

The notes are callable on any business day beginning March 15, 2014.

If the final basket level is less than or equal to the initial level, the payout on any call date or at maturity will be par, resulting in a loss of 9.09% to the investor. If the final level is greater than the initial level, investors will receive par plus the gain in the basket. A final basket level of 110 or greater provides a positive return.

The notes are expected to price and settle in March.

UBS Securities LLC is the agent.

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