New Issue: UBS prices $17.5 million contingent income autocallables linked to three indexes

By Toni Weeks

San Luis Obispo, Calif., Dec. 24 - UBS AG, London Branch priced $17.5 million of contingent income autocallable securities due Dec. 24, 2020 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the Topix index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 10% if each index closes at or above its 75% coupon barrier level on a determination date for that quarter.

The notes will be redeemed at par plus the contingent coupon if all of the indexes close at or above their respective initial levels on any of the first 27 quarterly redemption determination dates.

If the notes are not called, the payout at maturity will be par plus the final contingent coupon unless any index finishes below its 50% downside threshold level, in which case investors will be fully exposed to the decline of the worst-performing index.

UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC will handle distribution.

Issuer:	UBS AG, London Branch
Issue:	Contingent income autocallable securities
Underlying indexes:	Euro Stoxx 50, Russell 2000, Topix
Amount:	$17,495,220
Maturity:	Dec. 24, 2020
Coupon:	10% per year, payable quarterly if each index closes at or above its coupon barrier level on the determination date for that quarter
Price:	Par of $10
Payout at maturity:	If each index finishes at or above its downside threshold level, par plus the final contingent coupon; otherwise, full exposure to losses of worst-performing index
Call:	At par plus the contingent coupon if each index closes at or above its initial level on any of the first 27 quarterly determination dates
Initial index levels:	3,049.35 for Euro Stoxx, 1,146.47 for Russell and 1,261.64 for Topix
Coupon barrier levels:	2,287.01 for Euro Stoxx, 859.85 for Russell and 946.23 for Topix; 75% of initial levels
Downside thresholds:	1,524.68 for Euro Stoxx, 573.24 for Russell, 630.82 for Topix, 50% of initial levels
Pricing date:	Dec. 20
Settlement date:	Dec. 26
Agent:	UBS Securities LLC with Morgan Stanley Smith Barney LLC as dealer
Fees:	3.5%
Cusip:	90271R699

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