New Issue: UBS prices $2.46 million contingent absolute return autocallables linked to Intel

By Marisa Wong

Madison, Wis., May 12 – UBS AG, London Branch priced $2.46 million of 0% contingent absolute return autocallable optimization securities due May 16, 2016 linked to Intel Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call premium of 12.1% if Intel shares close at or above the initial price on any quarterly observation date.

If the notes are not called and the final share price is greater than or equal to the trigger price, 85% of the initial price, the payout at maturity will be par plus the absolute value of the stock return. Otherwise, investors will be fully exposed to the stock decline.

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

Issuer:	UBS AG, London Branch
Issue:	Contingent absolute return autocallable optimization securities
Underlying stock:	Intel Corp. (Symbol: INTC)
Amount:	$2,458,000
Maturity:	May 16, 2016
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	If final share price is greater than or equal to trigger price, par plus absolute value of stock return; otherwise, full exposure to share price decline
Call:	Automatically at par plus 12.1% per year if Intel shares close at or above initial share price on any observation date, which occurs every quarter
Initial share price:	$32.80
Trigger price:	$27.88, 85% of initial price
Pricing date:	May 8
Settlement date:	May 13
Underwriters:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	1.5%
Cusip:	90274T361

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.