By Jennifer Chiou
New York, Nov. 13 - UBS AG, London Branch priced $12,661,660 of contingent income autocallable securities due Nov. 14, 2016 linked to the common stock of Valero Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Valero Energy stock closes at or above the downside threshold level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment of 3.25% for that quarter, which is equivalent to 13% per year.
If the stock closes at or above the initial share price on any of the first 11 quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below the downside threshold level, in which case the payout will be a number of Valero Energy shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.
UBS Securities LLC is the agent. Distribution is through Morgan Stanley Smith Barney LLC.
| Issuer: | UBS AG, London Branch
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Valero Energy Corp. (NYSE: VLO)
|
| Amount: | $12,661,660
|
| Maturity: | Nov. 14, 2016
|
| Coupon: | 13% per year, payable quarterly if Valero Energy shares close at or above downside threshold level on review date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus contingent payment; otherwise, Valero Energy shares equal to $10 divided by the initial share price or, at issuer's option, equivalent amount in cash
|
| Call: | Automatically at par plus contingent payment if shares close at or above initial price on any of the first 11 quarterly determination dates beginning on Feb. 10
|
| Initial share price: | $40.32
|
| Downside threshold: | $30.24, 75% of initial share price
|
| Pricing date: | Nov. 8
|
| Settlement date: | Nov. 14
|
| Agent: | UBS Securities LLC
|
| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 2.25%
|
| Cusip: | 90271R301
|
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