UBS to price contingent income autocallable notes on Genworth

By Marisa Wong

Madison, Wis., May 8 - UBS AG, London Branch plans to price contingent income autocallable securities due May 19, 2017 linked to Genworth Financial, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

If Genworth stock closes at or above the 80% downside threshold level on a quarterly determination date, the notes will pay a contingent payment of 2.375% for that quarter, which is equivalent to 9.5% per year.

If the stock closes at or above the initial price on any of the first 11 quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment.

If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below the downside threshold level, in which case the payout will be a number of Genworth shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.

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

The notes will price May 16 and settle May 21.

The Cusip number is 90272X364.

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