UBS to price three-year call warrants linked to S&P 500 index

By Jennifer Chiou

New York, March 4 – UBS AG, London Branch plans to price European-style, cash-settled call warrants due March 9, 2018 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notional amount is $1,000 per warrant. The initial investment will be $133.00 per warrant, or 13.3% of the notional amount. The minimum purchase requirement is 76 warrants.

The warrants will be automatically exercised on the expiration date if the index’s final level is greater than the initial index level. The cash settlement amount will be the greater of (a) the notional amount multiplied by the index return and (b) zero.

The index return must be greater than 13.3% for investors to receive a positive return on their initial investments.

If the index’s final level is equal to or less than the initial index level, the warrants will expire worthless and investors will lose their entire initial investments in the warrants.

The exact terms will be determined at pricing.

The warrants (Cusip: 90274P401) will price on March 6 and settle on March 11.

UBS Investment Bank is the underwriter with J.P. Morgan Securities LLC as agent.

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