UBS plans contingent income autocallable notes tied to General Motors

By Marisa Wong

Madison, Wis., Jan. 7 - UBS AG, London Branch plans to price contingent income autocallable securities due Jan. 13, 2017 linked to General Motors Co. shares, according to an FWP with the Securities and Exchange Commission.

If General Motors stock closes at or above the 75% downside threshold level on any quarterly determination date, the notes will pay a contingent coupon at an annual rate of 8.8% for that quarter.

If General Motors shares close at or above the initial price on any of the first 11 quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent coupon.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock closes below the downside threshold level, in which case the payout will be a number of General Motors shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

The notes will price on Jan. 10 and settle on Jan. 15.

UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC is the distributor.

The Cusip number is 90271T299.

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