UBS plans to price airbag phoenix autocallables linked to Fortinet

By Toni Weeks

San Luis Obispo, Calif., Jan. 12 – UBS AG, London Branch plans to price airbag phoenix autocallable optimization securities due July 22, 2016 linked to the common stock of Fortinet, Inc., according to an FWP filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon at the rate of 8.7% to 10.7% per year if Fortinet shares close at or above the coupon barrier, 75% of the initial share price, on the observation date for that month. The exact coupon will be set at pricing.

The notes will be automatically called at par if Fortinet shares close at or above the initial share price on any autocall observation date, which occur quarterly.

If the notes are not called and the final price of Fortinet shares is greater than or equal to the conversion price, 85% of the initial share price, the payout at maturity will be par. Otherwise, investors will receive a number of Fortinet shares equal to $1,000 divided by the conversion price.

UBS Financial Services Inc. and UBS Investment Bank are the agents.

The notes are expected to price Jan. 16 and settle Jan. 22.

The Cusip number is 90274F692.

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