New Issue: UBS prices $5.64 million contingent income autocallables linked to three indexes

By Angela McDaniels

Tacoma, Wash., July 25 - UBS AG, London Branch priced $5.64 million of contingent income autocallable securities due July 26, 2018 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If each index closes at or above its coupon barrier level, 75% of its initial index level, on a quarterly determination date, the notes will pay a contingent payment at an annualized rate of 8.25% for that quarter.

The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any of the first 19 determination dates.

If the final level of each index is greater than or equal to its downside threshold level, 55% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any. If any index finishes below its downside threshold level, investors will suffer a loss that is proportionate to the negative underlying return of the worst-performing index.

UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC is handling distribution.

Issuer:	UBS AG, London Branch
Issue:	Contingent income autocallable securities
Underlying indexes:	Euro Stoxx 50, Russell 2000, S&P 500
Amount:	$5,642,500
Maturity:	July 26, 2018
Coupon:	8.25% per year payable quarterly if each index closes at or above its coupon barrier level on the determination date for that quarter
Price:	Par of $10
Payout at maturity:	If each index finishes at or above its downside threshold level, par plus the final contingent coupon, if any; otherwise, full exposure to the decline of the worst-performing index
Call:	Automatically at par plus the contingent coupon if each index closes at or above its initial level on any of the first 19 determination dates
Initial index levels:	2,722.90 for Euro Stoxx 50, 1,052.20 for Russell 2000 and 1,692.39 for S&P 500
Coupon barrier levels:	2,042.18 for Euro Stoxx 50, 789.15 for Russell 2000 and 1,269.29 for S&P 500; 75% of initial levels
Downside threshold:	1,497.60 for Euro Stoxx 50, 578.71 for Russell 2000 and 930.81 for S&P 500; 55% of initial levels
Pricing date:	July 23
Settlement date:	July 26
Agent:	UBS Securities LLC
Distribution:	Morgan Stanley Smith Barney LLC
Fees:	3%
Cusip:	90271L445

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