New Issue: UBS prices $3.2 million contingent income autocallables linked to the Dow, S&P 500

By Marisa Wong

Morgantown, W.Va., March 8 – UBS AG, London Branch priced $3.2 million of contingent income autocallable securities due March 5, 2019 linked to the lesser performing of the Dow Jones industrial average 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 at an annual rate of 9% if each index closes at or above its downside threshold level, 75% 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 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 lesser-performing index.

UBS Securities LLC is the agent. Morgan Stanley Wealth Management is handling distribution.

Issuer:	UBS AG, London Branch
Issue:	Contingent income autocallable securities
Underlying indexes:	Dow Jones industrial average and S&P 500
Amount:	$3,200,460
Maturity:	March 5, 2019
Coupon:	9% per year, payable quarterly if each index closes at or above its downside threshold level on determination date for that quarter
Price:	Par of $10
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 lesser-performing index
Call:	Automatically at par plus contingent coupon if each index closes at or above initial level on any determination date other than final one
Initial index levels:	16,516.50 for Dow and 1,932.23 for S&P 500
Downside thresholds:	12,387.38 for Dow and 1,449.17 for S&P 500; 75% of initial index levels
Pricing date:	Feb. 29
Settlement date:	March 3
Agent:	UBS Securities LLC
Distribution:	Morgan Stanley Wealth Management
Fees:	2.5%
Cusip:	90275L680

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