By Toni Weeks
San Luis Obispo, Calif., Nov. 5 – UBS AG, London Branch priced $12.11 million of contingent income autocallable securities due Nov. 3, 2017 linked to the common units of Blackstone Group LP, according to a 424B2 filing with the Securities and Exchange Commission.
If Blackstone units close at or above the downside threshold level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 11.6%.
The notes will be called at par of $10 plus the contingent coupon if Blackstone units close at or above the initial price on any of the first 11 quarterly determination dates.
If the final unit price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of Blackstone shares equal to $10 divided by the initial price or, at the issuer’s option, the cash 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 units: | Blackstone Group LP (Symbol: BX)
|
| Amount: | $12,113,080
|
| Maturity: | Nov. 3, 2017
|
| Coupon: | 11.6%, payable quarterly if Blackstone units close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, a number of Blackstone shares equal to $10 divided by initial price or, at issuer’s option, cash value of those shares
|
| Call: | At par plus contingent coupon if Blackstone units close at or above initial price on any of first 11 quarterly determination dates
|
| Initial share price: | $30.12
|
| Downside threshold: | $22.59, 75% of initial price
|
| Pricing date: | Oct. 31
|
| Settlement date: | Nov. 5
|
| Agent: | UBS Securities LLC
|
| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 2.5% (2% selling commission, 0.5% structuring fee)
|
| Cusip: | 90274B642
|
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