By Susanna Moon
Chicago, Dec. 18 - UBS AG, London Branch priced $2.53 million of 0% contingent absolute return autocallable optimization securities due Dec. 22, 2014 linked to American Depositary Shares of Rio Tinto plc, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus an annualized call premium of 9.85% if Rio Tinto stock closes at or above the initial share price on any quarterly call date.
If the notes are not called and the stock finishes at or above the 75% trigger level, the payout at maturity will be par plus the absolute value of the stock return.
Otherwise, investors will be fully exposed to the any losses.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent absolute return autocallable optimization securities
|
| Underlying stock: | Rio Tinto plc (NYSE: RIO)
|
| Amount: | $2,534,000
|
| Maturity: | Dec. 22, 2014
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | If stock finishes at or above trigger level, par plus absolute value of stock return; otherwise, full exposure to losses
|
| Call: | At par plus 9.85% per year if Rio Tinto stock closes at or above initial share price on any quarterly call date
|
| Initial share price: | $51.78
|
| Trigger price: | $38.84, 75% of initial share price
|
| Pricing date: | Dec. 13
|
| Settlement date: | Dec. 18
|
| Agents: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
|
| Cusip: | 90271R806
|
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