By Wendy Van Sickle
Columbus, Ohio, Jan. 15 – UBS AG, London Branch priced $4.65 million of contingent income autocallable securities due Jan. 17, 2019 linked to the worse performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filed with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 10% if each index closes at or above its downside threshold level, 80% of its initial index level, on the determination date for that quarter.
The notes will be automatically called at par of $10 plus the contingent coupon if each index closes at or above its initial level on any quarterly determination date other than the final one.
If each index finishes at or above its downside threshold level, the payout at maturity will be par plus the final contingent coupon. If the final level of either index is less than its downside threshold level, investors will be fully exposed to the decline of the worse performing index.
UBS Securities LLC and Morgan Stanley Smith Barney LLC are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Russell 2000 and S&P 500
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| Amount: | $4,647,000
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| Maturity: | Jan. 17, 2019
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| Coupon: | 10% per year, payable quarterly if each index closes at or above its downside threshold level on determination date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | If each index finishes at or above downside threshold level, par plus final contingent coupon; if final level of either index is less than downside threshold level, full exposure to decline of worse performing index
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| Call: | Automatically at par plus contingent coupon if each index closes at or above initial level on any quarterly determination date other than final one
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| Initial index levels: | 1,010.187 for Russell 2000 and 1,890.28 for S&P 500
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| Downside threshold: | 808.150 for Russell 2000 and 1,512.22 for S&P 500; 80% of initial index levels
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| Pricing date: | Jan. 13
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| Settlement date: | Jan. 19
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| Agents: | UBS Securities LLC and Morgan Stanley Smith Barney LLC
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| Fees: | 2.5%
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| Cusip: | 90275L409
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