By Marisa Wong
Madison, Wis., Nov. 27 - UBS AG, London Branch priced $9.32 million contingent income autocallable securities due Nov. 28, 2016 linked to the common stock of Starbucks Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Starbucks stock closes at or above the 80% barrier level on a quarterly determination date, the notes will pay a contingent payment of 2.15% for that quarter, equivalent to 8.6% per year.
If the stock closes at or above the initial share price on any of the first 11 quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below the 80% downside threshold level, in which case the payout will be a number of Starbucks shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.
UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC is the dealer.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Starbucks Corp. (Symbol: SBUX)
|
| Amount: | $9,323,860
|
| Maturity: | Nov. 28, 2016
|
| Coupon: | 2.15% per quarter if Starbucks shares close at or above downside threshold level on review date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus contingent payment; otherwise, a number of Starbucks shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent
|
| Call: | At par plus contingent payment if shares close at or above initial price on any of first 11 quarterly determination dates
|
| Initial share price: | $81.35
|
| Downside threshold: | $65.08, 80% of initial share price
|
| Pricing date: | Nov. 22
|
| Settlement date: | Nov. 27
|
| Agent: | UBS Securities LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 2.25%
|
| Cusip: | 90271R442
|
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