UBS delays pricing of contingent income autocallables linked to Goldman, Wells Fargo

By Angela McDaniels

Tacoma, Wash., March 21 - UBS AG, London Branch pushed back the pricing date of its contingent income autocallable securities due March 31, 2016 linked to the common stocks of Goldman Sachs Group, Inc. and Wells Fargo & Co., according to an FWP filing with the Securities and Exchange Commission.

The notes are now expected to price March 28 and settle April 3. Previously, they were expected to price March 25 and settle April 1.

If both Goldman Sachs and Wells Fargo shares close at or above their downside threshold levels - 75% of the respective initial share prices - on a quarterly determination date, investors will receive a contingent payment of $0.2350 to $0.2725 for each $10.00 note. Otherwise, no contingent payment will be made for that quarter. The contingent payment is equivalent to 9.4% to 10.9% per year and will be set at pricing.

If the closing share price of each underlying stock is greater than or equal to its initial share price on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment.

If the notes are not called and the final share price of each underlying stock is greater than or equal to its downside threshold level, the payout at maturity will be par plus the contingent payment. If the final price of either stock is less than its downside threshold level, the payout will be a number of shares of the worst-performing stock equal to $10.00 divided by the initial share price or, at the issuer's option, an amount in cash equal to the value of those shares.

UBS Securities LLC is the agent. Distribution is through Morgan Stanley Smith Barney LLC.

The Cusip number is 90271B777.

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