By Marisa Wong
Morgantown, W.Va., Nov. 8 – UBS AG, London Branch priced $5.37 million of trigger autocallable contingent yield notes due Nov. 9, 2018 linked to the SPDR S&P 500 ETF trust, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at a rate of 7% per year if the ETF’s shares close at or above the downside threshold level, 75.9% of the initial share price, on the observation date for that quarter.
After six months, the notes will be automatically called at par of $10 if the ETF closes at or above the initial share price on any quarterly observation date.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger autocallable contingent yield notes
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| Underlying fund: | SPDR S&P 500 ETF Trust
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| Amount: | $5,368,520
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| Maturity: | Nov. 9, 2018
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| Coupon: | 7% per year, payable each quarter that ETF’s shares close at or above downside threshold level on observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to the downside threshold level, par; otherwise, investors will be fully exposed to decline
|
| Call: | Automatically at par if ETF closes at or above the initial share price on any quarterly observation date after six months
|
| Initial share price: | $208.55
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| Downside threshold: | $158.29, 75.9% of initial price
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| Pricing date: | Nov. 4
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| Settlement date: | Nov. 9
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
|
| Cusip: | 90275Y757
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