New Issue: UBS sells $1.5 billion of 4.75% fixed-to-floating rate 10-year CoCos at par

By Stephanie N. Rotondo

Phoenix, May 15 - UBS AG priced $1.5 billion of 4.75% $100-par fixed-to-floating rate contingent convertible notes (Expected ratings: BBB-/BBB+) due May 22, 2023 on Wednesday, according to a market source.

UBS Securities LLC was the global coordinator and arranger. Bookrunners are Barclays, BBVA, Credit Agricole, Danske, HSBC Securities, ING, Banca IMI, Lloyds Securities, Mizuho Securities LLC, RBS Capital LLC, Santander, UBS Securities LLC and UniCredit.

The notes can be called on May 22, 2018. After that date, the coupon is reset to the prevailing five-year mid-market swap rate plus 376.5 basis points.

The notes are convertible into equity upon the earlier of the bank's common equity tier I ratio falling below 5% or upon the occurrence of a viability event.

UBS is a Zurich-based bank with a U.S. headquarters in New York.

Issuer:	UBS AG
Securities:	Fixed-to-floating rate contingent convertible notes
Amount:	$1.5 billion
Maturity:	May 22, 2023
Bookrunners:	Barclays, BBVA, Credit Agricole, Danske, HSBC Securities, ING, Banca IMI, Lloyds Securities, Mizuho Securities LLC, RBS Capital LLC, Santander, UBS Securities LLC, UniCredit
Coupon:	Fixed at 4.75% until May 22, 2018, then floats at the five-year mid-market swap rate plus 376.5 bps
Price:	Par of $100
Yield:	4.75%
Call option:	On May 22, 2018
Pricing date:	May 15
Settlement date:	May 22
Expected ratings:	Standard & Poor's: BBB-
	Fitch: BBB+

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