New Issue: UBS prices $7.33 million contingent income autocallables linked to three indexes

By Angela McDaniels

Tacoma, Wash., May 17 - UBS AG, London Branch priced $7.33 million contingent income autocallable securities due May 18, 2018 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 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, investors will receive a contingent payment of $0.2125 per $10.00 note that quarter, which is equivalent to 8.5% per year.

The notes will be automatically redeemed at par plus the contingent payment if each index closes at or above its initial level on any of the first 19 quarterly redemption determination dates.

If the notes are not called and each index finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final contingent payment, if any. If any index finishes below its downside threshold level, investors will be fully exposed to the decline of the worst-performing index from its initial level.

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

Issuer:	UBS AG, London Branch
Issue:	Contingent income autocallable securities
Underlying indexes:	Euro Stoxx 50, Russell 2000 and S&P 500
Amount:	$7,334,930
Maturity:	May 18, 2018
Coupon:	If each index closes at or above coupon barrier level on quarterly determination date, notes will pay coupon that quarter at annualized rate of 8.5%
Price:	Par of $10
Payout at maturity:	If each index finishes at or above downside threshold level, par plus final contingent payment, if any; otherwise, full exposure to decline of worst-performing index from its initial level
Call:	Automatically at par plus contingent payment if each index closes at or above initial level on any of first 19 quarterly redemption determination dates
Initial index levels:	2,809.58 for Euro Stoxx, 988.54 for Russell 2000 and 1,658.78 for S&P 500
Coupon barrier levels:	2,107.19 for Euro Stoxx, 741.41 for Russell 2000 and 1,244.09 for S&P 500; 75% of initial levels
Downside thresholds:	1,545.27 for Euro Stoxx, 543.70 for Russell 2000 and 912.33 for S&P 500; 55% of initial levels
Pricing date:	May 15
Settlement date:	May 20
Agent:	UBS Securities LLC
Distribution:	Morgan Stanley Smith Barney LLC
Fees:	3%
Cusip:	90271C411

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