UBS plans contingent income autocallables linked to Hewlett-Packard

By Angela McDaniels

Tacoma, Wash., Oct. 18 - UBS AG, London Branch plans to price contingent income autocallable securities due Oct. 30, 2014 linked to the common stock of Hewlett-Packard Co., according to an FWP filing with the Securities and Exchange Commission.

If Hewlett-Packard stock closes at or above the downside threshold level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment of 3% for that quarter. The amount is equivalent to 12% per year.

If the closing share price is greater than or equal to the initial share price on any of the first three quarterly determination dates, the notes will be automatically redeemed at par of $10 plus the contingent payment.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. Otherwise, the payout will be a number of Hewlett-Packard 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.

The notes will price Oct. 25 and settle Oct. 30.

The Cusip number is 90271M880.

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