By Angela McDaniels
Tacoma, Wash., Oct. 14 – UBS AG, London Branch priced $1.68 million of contingent income autocallable securities due Oct. 13, 2017 linked to the common stock of First Solar, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If First Solar shares close at or above the downside threshold level, 70% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 15%.
The notes will be called at par of $10 plus the contingent coupon if First Solar shares close at or above the initial share price on any quarterly determination date other than the final determination date.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of First Solar shares equal to $10 divided by the initial share price or, at the issuer’s option, a cash amount equal to the value of those shares.
UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | First Solar, Inc. (Symbol: FSLR)
|
| Amount: | $1,682,990
|
| Maturity: | Oct. 13, 2017
|
| Coupon: | 15% per year, payable quarterly if First Solar shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, number of First Solar shares equal to $10 divided by initial share price or, at issuer’s option, equivalent amount in cash
|
| Call: | At par plus contingent coupon if First Solar shares close at or above initial share price on any quarterly determination date other than final determination date
|
| Initial share price: | $53.72
|
| Downside threshold: | $37.60, 70% of initial share price
|
| Pricing date: | Oct. 10
|
| Settlement date: | Oct. 16
|
| Agent: | UBS Securities LLC
|
| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 2.5%
|
| Cusip: | 90274B303
|
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