UBS plans trigger phoenix autocallables linked to Russell, S&P 500

By Angela McDaniels

Tacoma, Wash., Jan. 19 – UBS AG, London Branch plans to price trigger phoenix autocallable optimization securities due Jan. 30, 2026 linked to the lesser performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter. The contingent coupon rate is expected to be 7.25% to 8% per year and will be set at pricing.

Beginning Jan. 26, 2017, the notes will be called at par if each index closes at or above its initial level on any quarterly observation date.

If the notes are not called and each index finishes at or above its trigger level, 50% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any. Otherwise, investors will be exposed to the decline of the lesser-performing index.

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

The notes will price Jan. 27.

The Cusip number is 90275L466.

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