UBS plans contingent income autocallables linked to Amazon, Apple

By Angela McDaniels

Tacoma, Wash., Oct. 21 – UBS AG, London Branch plans to price contingent income autocallable securities due Oct. 28, 2022 linked to the lesser performing of the common stocks of Amazon.com, Inc. and Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.

If each stock closes at or above its downside threshold level, 65% of its initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 9.55%.

The notes will be called at par of $10 plus the contingent coupon if each stock closes at or above its initial share price on any quarterly determination date other than the final determination date.

If the lesser-performing stock’s final share price is greater than or equal to its downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the lesser-performing stock’s final share price is less than the initial share price.

UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.

The notes are expected to price Oct. 25.

The Cusip number is 90281E654.

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