UBS to price phoenix autocallable notes linked to Weatherford

By Angela McDaniels

Tacoma, Wash., March 18 - UBS AG, London Branch plans to price phoenix autocallable notes due April 8, 2015 linked to the common stock of Weatherford International Ltd., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 13.8% per year if Weatherford shares close at or above the barrier price on the observation date for that quarter. Otherwise, no interest will be paid that quarter. The barrier price will be 80% of the initial share price.

The notes will be called at par plus the contingent coupon if Weatherford shares close at or above the initial share price on any quarterly observation date.

If the notes are not called and Weatherford shares finish at or above the barrier price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be fully exposed to the decline in the share price.

J.P. Morgan Securities LLC and UBS Investment Bank are the agents.

The notes are expected to price March 21 and settle March 26.

The Cusip number is 90270KBK4.

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