UBS plans three-year contingent income autocallables linked to Cobalt

By Susanna Moon

Chicago, Sept. 9 - UBS AG, London Branch plans to price contingent income autocallable securities due Sept. 16, 2016 linked to Cobalt International Energy, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 18% if Cobalt stock closes at or above the 60% downside threshold level on the determination date for that quarter.

If the shares close at or above the initial stock price on any of the first 11 quarterly determination dates, the notes will be called at par plus the contingent coupon.

The payout at maturity will be par unless Cobalt stock finishes below the downside threshold price, in which case investors will receive a number of shares of Cobalt stock equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

UBS Securities LLC is the agent, and Morgan Stanley Smith Barney LLC will handle distribution.

The notes will price on Sept. 13 and settle on Sept. 16.

The Cusip number is 90271M302.

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