UBS plans floating-rate trigger phoenix autocallables on Russell 2000

By Jennifer Chiou

New York, Nov. 7 – UBS AG, London Branch plans to price floating-rate trigger phoenix autocallable optimization securities due Nov. 28, 2017 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a coupon if the index closes at or above the trigger level, 75% of the initial level, on the observation date for that quarter. The contingent coupon rate is Libor plus 500 basis points per year.

The notes will be called at par plus the contingent coupon if the index closes at or above the initial index level on a quarterly observation date.

If the notes are not called and the index finishes at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the index’s decline from its initial level.

The notes (Cusip: 90270KDY2) will price on Nov. 21 and settle on Nov. 26.

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

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