By Susanna Moon
Chicago, April 29 – UBS AG, London Branch priced $8.95 million of contingent income autocallable securities due April 28, 2016 linked to Valero Energy Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.15% if the stock closes at or above its 75% barrier level on the observation date for that quarter.
The notes will be redeemed at par plus the contingent payment if the stock closes at or above the redemption level on any of the first three determination dates.
The payout at maturity will be par plus the final coupon unless the stock finishes below its 75% barrier level, in which case investors will receive a number of Valero 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 with Morgan Stanley Wealth Management handling distribution.
| Issuer: | UBS AG, London Branch
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Valero Energy Corp. (Symbol: VLO)
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| Amount: | $8,953,850
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| Maturity: | April 28, 2016
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| Coupon: | 10.15% annualized for each quarter that stock closes at or above barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus final coupon unless the stock finishes below barrier level, in which case number of Valero shares equal to $10 divided by initial share price
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| Call: | At par plus contingent payment if the stock closes at or above redemption level on any of the first three determination dates
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| Initial level: | $60.05
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| Barrier level: | $45.04, 75% of initial level
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| Pricing date: | April 24
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| Settlement date: | April 29
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| Agent: | UBS Securities LLC with Morgan Stanley Wealth Management handling distribution
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| Fees: | 1.25%
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| Cusip: | 90274T171
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