UBS plans contingent absolute return autocallables on Royal Caribbean

By Toni Weeks

San Luis Obispo, Calif., March 24 – UBS AG, London Branch plans to price 0% contingent absolute return autocallable optimization securities due April 4, 2016 linked to Royal Caribbean Cruises Ltd. shares, according to an FWP with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call premium of 10.1% to 13.1% if Royal Caribbean shares close at or above the initial price on any quarterly observation date. The exact call premium will be set at pricing.

If the notes are not called and the final share price is greater than or equal to the trigger price, 80% of the initial price, the payout at maturity will be par plus the absolute value of the stock return. Otherwise, investors will be fully exposed to the stock decline.

The notes (Cusip: 90274P682) will price March 27 and settle March 31.

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

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