UBS plans contingent income autocallables tied to Palo Alto Networks

By Toni Weeks

San Luis Obispo, Calif., March 20 – UBS AG, London Branch plans to price contingent income autocallable securities due April 2, 2018 linked to the common stock of Palo Alto Networks, Inc., according to an FWP with the Securities and Exchange Commission.

If Palo Alto Networks stock closes at or above the downside threshold level, 70% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment of $0.3088 per $10 note for that quarter. The payment is equivalent to 12.35% per year.

If the closing share price is greater than or equal to the initial share price on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment.

If the notes are not called and the final share price is greater than or equal to the 70% downside threshold level, the payout at maturity will be par plus the contingent payment. Otherwise, investors will receive a number of shares of Palo Alto Networks stock equal to $10 divided by the initial share price or, at the issuer’s option, the cash value of those shares.

The notes (Cusip: 90274P641) will price March 27 and settle April 1.

UBS Securities LLC will be the agent with Morgan Stanley Wealth Management as dealer.

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