UBS plans to price trigger phoenix autocallables tied to Schlumberger

By Wendy Van Sickle

Columbus, Ohio, Oct. 21 – UBS AG, London Branch plans to price trigger phoenix autocallable optimization securities due Oct. 29, 2018 linked to the common stock of Schlumberger NV, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a coupon at the rate of 8% per year if Schlumberger stock closes at or above the coupon barrier, 70% to 75% of the initial share price, on the observation date for that quarter. The exact coupon barrier will be set at pricing.

Beginning in April 2016, the notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial price on any quarterly observation date.

If the notes are not called and Schlumberger shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.

UBS Financial Services Inc. and UBS Investment Bank are the agents.

The notes will price on Oct. 23 and settle on Oct. 28.

The Cusip number is 90275G582.

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