UBS plans three-year contingent income autocallables linked to Hess

By Susanna Moon

Chicago, May 9 - UBS AG, London Branch plans to price contingent income autocallable securities due May 19, 2016 linked to Hess Corp. shares, according to an FWP with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annualized rate of 8.3% to 10.3% if Hess stock closes at or above the 70% barrier level on the determination date for that quarter.

If the shares close at or above the initial level on any of the first 11 quarterly determination dates, the notes will be called at par plus the contingent coupon.

If Hess stock finishes at or above the 70% trigger level, the payout at maturity will be par plus the contingent payment.

Otherwise, investors will receive a number of shares of Hess stock equal to $10 divided by the initial share price or, at the issuer's option, the cash value of those shares.

UBS Securities LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.

The notes will price on May 15 and settle in May 20.

The Cusip number is 90271C510.

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