By Angela McDaniels
Tacoma, Wash., Feb. 20 - UBS AG, London Branch priced $1.55 million of trigger phoenix autocallable optimization securities due Feb. 23, 2016 linked to least performing of the common stocks of General Electric Co., International Business Machines Corp. and Johnson & Johnson, according to a 424B2 filing with the Securities and Exchange Commission.
If each stock closes at or above its trigger price, 75% of the initial share price, on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 10% per year. Otherwise, no coupon will be paid that quarter.
If each stock closes at or above its initial price on a quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and each stock finishes at or above its trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline of the least performing stock from its initial price.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying stocks: | General Electric Co. (Symbol: GE), International Business Machines Corp. (Symbol: IBM) and Johnson & Johnson (Symbol: JNJ)
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| Amount: | $1,546,000
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| Maturity: | Feb. 23, 2016
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| Coupon: | 10% per year, payable quarterly if each stock closes at or above trigger price on observation date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | Par plus contingent coupon if each stock finishes at or above trigger price; otherwise, par plus return of least performing stock
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| Call: | Automatically at par plus contingent coupon if each stock closes at or above initial price on a quarterly observation date
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| Initial share prices: | $25.64 for GE, $183.19 for IBM and $92.17 for J&J
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| Trigger price: | $19.24 for GE, $137.39 for IBM and $69.13 for J&J, 75% of initial share prices
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| Pricing date: | Feb. 18
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| Settlement date: | Feb. 21
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2.18%
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| Cusip: | 90270KAZ2
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