By Marisa Wong
Madison, Wis., May 29 – UBS AG, London Branch priced $3.91 million of contingent income autocallable securities due May 25, 2018 linked to the common stock of Tesla Motors, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Tesla shares close at or above the downside threshold level, 70% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 14.5%.
The notes will be called at par of $10 plus the contingent coupon if Tesla shares close at or above the initial share price on any of the first 11 quarterly determination dates.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of Tesla shares equal to $10 divided by the initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC will handle distribution.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
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| Underlying stock: | Tesla Motors, Inc. (Symbol: TSLA)
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| Amount: | $3,912,550
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| Maturity: | May 25, 2018
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| Contingent payment: | 14.5% per year, payable each quarter that Tesla stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10
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| Payout at maturity: | Par plus contingent coupon if Tesla stock finishes at or above downside threshold; otherwise, a number of Tesla shares equal to $10 divided by the initial share price or, at issuer’s option, cash equivalent
|
| Call: | At par plus contingent payment if Tesla stock closes at or above initial share price on any of first 11 determination dates
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| Initial share price: | $247.73
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| Downside threshold level: $173.41, 70% of initial price
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| Pricing date: | May 22
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| Settlement date: | May 28
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| Agent: | UBS Securities LLC
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| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 2.5%
|
| Cusip: | 90274T478
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