By Toni Weeks
San Diego, Jan. 15 - UBS AG, London Branch priced $2 million trigger phoenix autocallable optimization securities due Jan. 22, 2018 linked to the iShares Russell 2000 index fund and the SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
If both funds close at or above the 69% trigger level on any quarterly observation date, the notes will pay a contingent coupon of 8% for that quarter.
If both funds close at or above the initial price on any quarterly observation date after one year, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called, the payout at maturity will be par plus the contingent coupon unless either fund finishes below the trigger price, in which case investors will be fully exposed to the decline of the least-performing fund.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying funds: | iShares Russell 2000 index fund and SPDR S&P 500 ETF Trust
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| Amount: | $2 million
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| Maturity: | Jan. 22, 2018
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| Coupon: | 8% per year, payable quarterly if fund closes at or above trigger price on observation date for that quarter
|
| Price: | Par of $10.00
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| Payout at maturity: | Par plus contingent coupon if fund finishes at or above trigger price; otherwise, par plus fund return
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| Call: | At par plus contingent coupon if funds close at or above initial prices on quarterly observation date
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| Initial levels: | $87.34 for Russell, $147.07 for S&P
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| Trigger levels: | $60.27 for Russell, $101.48 for S&P; 69% of initial price
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| Pricing date: | Jan. 11
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| Settlement date: | Jan. 16
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2.5%
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| Cusip: | 90271B256
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