UBS plans trigger autocallable contingent yield notes tied to indexes

By Wendy Van Sickle

Columbus, Ohio, Aug. 3 – UBS AG, London Branch plans to price trigger autocallable contingent yield notes due Aug. 15, 2019 linked to the lesser performing of the Nasdaq 100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each index closes at or above its downside threshold, 70% of its initial level, on the observation date for that quarter. The contingent coupon rate is expected to be 7% to 8% per year and will be set at pricing.

After six months, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly observation date.

The payout at maturity will be par unless either index finishes below its downside threshold level, in which case investors will be fully exposed to the decline of the lesser-performing index.

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

The notes will price on Aug. 12 and settle on Aug. 17.

The Cusip number is 90275Y237.

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