By Angela McDaniels
Tacoma, Wash., Aug. 7 – UBS AG, London Branch priced $610,000 of phoenix autocallable notes due Oct. 7, 2015 linked to the common stock of Valeant Pharmaceuticals International, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 14.7% per year if Valeant shares close at or above the trigger price, 75% of the initial share price, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial share price on any quarterly observation date.
If the notes are not called and the shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, the payout will be par minus 1% for every 1% that the final share price is less than the initial share price.
UBS Investment Bank is the underwriter with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Phoenix autocallable notes
|
| Underlying stock: | Valeant Pharmaceuticals International, Inc. (Symbol: VRX)
|
| Amount: | $610,000
|
| Maturity: | Oct. 7, 2015
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| Coupon: | 14.7%, payable quarterly if stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if Valeant shares finish at or above trigger price; otherwise, 1% loss for every 1% that final share price is less than initial share price
|
| Call: | Automatically at par plus contingent coupon if Valeant shares close at or above initial price on any quarterly observation date
|
| Initial share price: | $117.43
|
| Final share price: | Average of closing share prices on five trading days ending Oct. 2, 2015
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| Trigger price: | $88.07, 75% of initial price
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| Pricing date: | Sept. 19
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| Settlement date: | Sept. 24
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| Underwriter: | UBS Investment Bank
|
| Agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 90270KDJ5
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