By Toni Weeks
San Luis Obispo, Calif., Nov. 12 – UBS AG, London Branch priced $232,000 of airbag phoenix autocallable optimization securities due May 13, 2016 linked to the common stock of Regeneron Pharmaceuticals, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 9.7% per year if Regeneron shares close at or above the coupon barrier, 70% of the initial share price, on the observation date for that month.
The notes will be automatically called at par if Regeneron shares close at or above the initial share price on any autocall observation date, which occur quarterly.
If the notes are not called and the final price of Regeneron shares is greater than or equal to the conversion price, 85% of the initial share price, the payout at maturity will be par. Otherwise, investors will receive a number of Regeneron shares equal to $1,000 divided by the conversion price.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
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| Issue: | Airbag phoenix autocallable optimization securities
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| Underlying stock: | Regeneron Pharmaceuticals, Inc. (Symbol: REGN)
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| Amount: | $232,000
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| Maturity: | May 13, 2016
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| Coupon: | 9.7% annualized for each month Regeneron shares close at or above coupon barrier on observation date for that month
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| Price: | Par
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| Payout at maturity: | If final share price is greater than or equal to conversion price, par; otherwise, 3.1137 Regeneron shares
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| Call: | At par if Regeneron shares close at or above initial share price on any quarterly autocall observation date
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| Initial share price: | $377.84
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| Coupon barrier: | $264.49, 70% of initial share price
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| Conversion price: | $321.16, 85% of initial share price
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| Pricing date: | Nov. 7
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| Settlement date: | Nov. 13
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 1.5%
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| Cusip: | 90274B873
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