UBS plans to price trigger phoenix autocallables linked to two indexes

By Marisa Wong

Madison, Wis., Jan. 23 - UBS AG, London Branch plans to price trigger phoenix autocallable optimization securities due Jan. 31, 2018 linked to the Euro Stoxx 50 index and the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If both indexes close at or above the trigger level on any quarterly observation date, the notes will pay a contingent coupon of 8% per year for that quarter. The trigger level is expected to be 65% to 70% of the initial level and will be set at pricing.

If both indexes close at or above the initial level 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 index finishes below the trigger level, in which case investors will be fully exposed to the decline of the lesser-performing index.

The notes (Cusip: 90271B322) are expected to price Jan. 29 and settle Jan. 31.

UBS Financial Services Inc. and UBS Investment Bank are the underwriters.

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