New Issue: UBS prices $8.3 million bear market securities linked to S&P

By Sarah Lizee

Olympia, Wash., May 21 – UBS AG, London Branch priced $8.3 million of 0% bear market securities due Dec. 3, 2020 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index return is negative, the payout at maturity will be par of $10 plus 3% for every 1% that the index declines, subject to a maximum return of 18%. If the index return is positive, investors will lose 1% for every 1% that the index increases.

UBS Securities LLC is the agent. Distribution is through Morgan Stanley Smith Barney LLC.

Issuer:	UBS AG, London Branch
Issue:	Bear market securities
Underlying index:	S&P 500
Amount:	$8,299,500
Maturity:	Dec. 3, 2020
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If index return is negative, par plus 3% for every 1% that index declines, subject to maximum return of 18%; if index return is positive, 1% loss for every 1% that index increases
Initial level:	2,863.7
Pricing date:	May 15
Settlement date:	May 20
Agent:	UBS Securities LLC
Distribution:	Morgan Stanley Smith Barney LLC
Fees:	1.75%
Cusip:	90281J661

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