UBS to price six-month inverse phoenix autocallables linked to oil

By Angela McDaniels

Tacoma, Wash., April 5 – UBS AG, London Branch plans to price inverse phoenix autocallable notes with static buffer and memory interest due Oct. 13, 2016 linked to the inverse performance of the relevant nearby Nymex-traded West Texas Intermediate light sweet crude oil futures contract, according to a 424B2 filing with the Securities and Exchange Commission.

If the official settlement price on July 8, 2016 is less than or equal to the interest barrier, 130% of the initial price, the notes will pay a contingent interest payment of $50 per $1,000 principal amount of notes. If the average of the official settlement prices on the five trading days ending Oct. 10, 2016 is less than or equal to the interest barrier, the notes will pay a contingent interest payment of $50 plus any previously unpaid contingent interest payment.

The notes will be automatically called if the official settlement price on July 8, 2016 is less than or equal to the initial price. If the notes are called, holders will receive par plus any contingent interest payment otherwise due.

If the notes are not called and the underlying return is equal to or less than 30%, the payout at maturity will be par. If the underlying return is greater than 30%, investors will lose 1.4286% for every 1% that the return exceeds 30%.

The final price will be the average of the official settlement prices on the five trading days ending Oct. 10, 2016.

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

The notes will price April 8.

The Cusip number is 90270KGN3.

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