UBS plans trigger phoenix autocallables linked to Euro Stoxx, Russell

By Toni Weeks

San Luis Obispo, Calif., May 15 - UBS AG, London Branch plans to price 0% trigger phoenix autocallable optimization securities due May 31, 2018 linked to the Euro Stoxx 50 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

If each index closes at or above its trigger level - 64% to 68% of the initial level - on any quarterly observation date, the issuer will pay an annualized contingent coupon of 8%. Otherwise, no coupon will be paid for that quarter. The exact trigger level will be set at pricing.

If each index closes at or above its initial level on any 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 the index finishes at or above the trigger level, the payout at maturity will be par plus the contingent coupon. Investors will be exposed to any losses.

The notes (Cusip: 90271C601) are expected to price May 29 and settle May 31.

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

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