UBS prices $12.9 million of notes on Barrick Gold; JPMorgan Chase plans notes tied to crude

By Sheri Kasprzak

New York, Oct. 29 - Structured products new issuance was led Tuesday by a $12.9 million offering from UBS AG, London Branch.

The bookrunner sold contingent income autocallable securities linked to the common stock of Barrick Gold Corp.

If Barrick Gold stock closes at or above the 65% barrier level on a quarterly determination date, the notes will pay a contingent payment of 2.875% for that quarter, equivalent to 11.5% per year.

If the stock closes at or above the initial share price on any of the first three quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below the 65% downside threshold level, in which case the payout will be a number of Barrick Gold shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

On Tuesday, the corporation's stock closed down $0.48, or 2.37%, to end at $19.77.

JPMorgan's WTI crude notes

Looking to upcoming offerings, JPMorgan Chase & Co. intends to price zero-coupon capped market plus notes due Jan. 7, 2015 linked to the first nearby month futures contract for WTI crude oil.

If the final contract price is at least 80% of the initial price, the payout at maturity will be par plus the greater of (a) 200% of the oil return and (b) 5%, subject to a maximum return of at least 20% that will be set at pricing. Otherwise, investors will lose 1% for every 1% that the final contract price is less than the initial price.

The final contract price will be the average of the contract prices on the five trading days ending Jan. 2, 2015.

J.P. Morgan Securities LLC is the agent.

The notes are expected to price Nov. 1 and settle Nov. 6.

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