By Angela McDaniels
Tacoma, Wash., Aug. 28 - UBS AG, London Branch priced $8.14 million of contingent income autocallable securities due Aug. 28, 2015 linked to the common stock of Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
If Wells Fargo stock closes at or above the downside threshold level - 75% of the initial share price - on a quarterly determination date, investors will receive a contingent payment of $0.26 for each $10.00 note. Otherwise, no contingent payment will be made for that period. The contingent payment is equivalent to 10.4% per year.
If the closing share price is greater than or equal to the initial share price on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final share price is less than the downside threshold level, the payout will be a number of Wells Fargo shares equal to $10.00 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
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: | Wells Fargo & Co. (NYSE: WFC)
|
| Amount: | $8,139,970
|
| Maturity: | Aug. 28, 2015
|
| Contingent payment: | If Wells Fargo stock closes at or above downside threshold on quarterly determination date, $0.26 per note; otherwise, no contingent payment will be made for that period
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold, par plus $0.26; if final share price is less than downside threshold, 0.2938 Wells Fargo shares or cash amount equal to value of those shares
|
| Call: | Automatically at par plus $0.26 if closing share price is greater than or equal to downside threshold level on any of first 11 quarterly determination dates
|
| Initial share price: | $34.04
|
| Downside threshold: | $25.53, 75% of initial share price
|
| Pricing date: | Aug. 24
|
| Settlement date: | Aug. 29
|
| Agent: | UBS Securities LLC
|
| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 2.25%
|
| Cusip: | 90269V199
|
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