UBS plans contingent income autocallables linked to three indexes

By Angela McDaniels

Tacoma, Wash., Aug. 22 - UBS AG, London Branch plans to price contingent income autocallable securities due Sept. 5, 2018 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If each index closes at or above its coupon barrier level, 75% of its initial index level, on a quarterly determination date, the notes will pay a contingent payment at an annualized rate of 8% for that quarter.

Beginning one year after issuance, the notes will be called at par of $10 plus the contingent payment if each index closes at or above its respective initial level on any quarterly determination date.

The payout at maturity will be par plus the final contingent payment, if any, unless any index finishes below its downside threshold level, 55% of its initial 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.

The notes are expected to price Aug. 30 and settle Sept. 5.

The Cusip number is 90271M112.

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