UBS to price contingent income autocallables linked to three indexes

By Angela McDaniels

Tacoma, Wash., June 5 – UBS AG, London Branch plans to price contingent income autocallable securities due June 16, 2020 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the Topix index, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent payment at an annual rate of 7.2% if each index closes at or above its coupon barrier level, 79% of its initial level, on the determination date for that quarter.

The notes will be redeemed at par of $10 plus the contingent coupon if each index closes at or above its call threshold level, 93% of its initial level, on any quarterly determination date other than the final date.

If the notes are not called and each index finishes at or above its downside threshold level, 79% of its initial level, the payout at maturity will be par plus the contingent coupon, if any. Otherwise, investors will be fully exposed to the decline of the worst-performing index.

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

The notes are expected to price June 11 and settle June 16.

The Cusip number is 90274T767.

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