UBS plans trigger autocallable contingent yield notes linked to GE

By Angela McDaniels

Tacoma, Wash., June 5 – UBS AG, London Branch plans to price trigger autocallable contingent yield notes due June 15, 2020 linked to the common stock of General Electric Co., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 7% per year if GE shares close at or above the downside threshold level, 77% to 80% of the initial share price, on the observation date for that quarter. The exact downside threshold level will be set at pricing.

Beginning after six months, the notes will be automatically called at par of $10 if GE shares close at or above the initial share price on any quarterly observation date.

If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

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

The notes will price June 9.

The Cusip number is 90280V566.

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