UBS plans trigger phoenix autocallable securities on General Electric

By Marisa Wong

Madison, Wis., April 2 - UBS AG, London Branch plans to price trigger phoenix autocallable optimization securities due April 11, 2018 linked to the common stock of General Electric Co., according to an FWP filing with the Securities and Exchange Commission.

If General Electric stock closes at or above the trigger price on a monthly observation date, the notes will pay a contingent coupon at an annualized rate of 7% for that month. The trigger price will be 73% to 75% of the initial price and will be set at pricing.

If the shares close at or above the initial price on any monthly observation date after one year, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called and General Electric shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon.

Otherwise, investors will be fully exposed to the share price decline from the initial price.

The notes (Cusip: 90271C130) are expected to price on April 5 and settle on April 10.

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

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