By Jennifer Chiou
New York, June 27 - UBS AG, London Branch priced $1 million of trigger phoenix autocallable optimization securities due June 29, 2018 linked to VMware Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 11.5% if the price of VMware stock closes at or above the 65% trigger price on the observation date for that month.
If the stock closes at or above the initial price on any monthly observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and the VMware share price finishes at or above the trigger price, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will be exposed to losses.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
Issuer: | UBS AG, London Branch
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Issue: | Trigger phoenix autocallable optimization securities
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Underlying stock: | VMware Inc. (Symbol: VMW)
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Amount: | $1 million
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Maturity: | June 29, 2018
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Coupon: | 11.5% annualized, payable monthly, if stock closes at or above trigger price on observation date for that month
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Price: | Par of $10.00
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Payout at maturity: | Par plus contingent coupon if VMware shares finish at or above trigger price; otherwise, par plus stock return
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Call: | At par plus contingent coupon if VMware shares close at or above initial price on a monthly observation date
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Initial share price: | $65.53
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Trigger price: | $42.59, 65% of initial price
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Pricing date: | June 25
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Settlement date: | June 28
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Agents: | UBS Financial Services Inc. and UBS Investment Bank
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Fees: | 2.5%
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Cusip: | 90271L155
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