By Toni Weeks
San Luis Obispo, Calif., Feb. 14 - UBS AG, London Branch priced $10 million of worst-of fixed-coupon autocallable securities with daily close monitoring due May 15, 2014 linked to the common stocks of salesforce.com, inc. and Yelp Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate is 23.7% per year, payable monthly.
The notes will be called at par of $10 if both stocks close at or above their initial prices on March 12, April 14 or May 12.
The payout at maturity will be par plus the final coupon unless the share price of either stock falls below its downside threshold level, 65% of its initial share price, during the life of the notes and the final price of either stock is less than its initial price, in which case the payout will be a number of shares of the worst-performing stock equal to $10 divided by that stock's 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. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | UBS AG, London Branch
|
| Issue: | Worst-of fixed-coupon autocallable securities with daily close monitoring
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| Underlying stocks: | salesforce.com, inc. (Symbol: CRM) and Yelp Inc. (Symbol: YELP)
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| Amount: | $10 million
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| Maturity: | May 15, 2014
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| Coupon: | 23.7%, payable monthly
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par unless either stock falls below its 65% downside threshold level during life of the notes and final price of either stock is less than its initial price, in which case number of shares of worst-performing stock equal to $10 divided by that stock's initial share price or cash amount equal to value of those shares
|
| Call: | Automatically at par plus the coupon if both stocks close at or above their initial prices on March 12, April 14 or May 12
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| Initial share prices: | $61.48 for salesforce.com and $90.76 for Yelp
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| Downside thresholds: | $39.96 for salesforce.com and $58.99 for Yelp; 65% of initial share prices
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| Pricing date: | Feb. 12
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| Settlement date: | Feb. 18
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| Agent: | UBS Securities LLC
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| Distribution: | Morgan Stanley Smith Barney LLC
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| Fees: | 1%
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| Cusip: | 90271T802
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