UBS plans trigger autocallable contingent yield notes on two stocks

By Devika Patel

Knoxville, Tenn., Oct. 23 – UBS AG, London Branch plans to price 0% trigger autocallable contingent yield notes due Oct. 29, 2020 linked to the common stocks of Apple Inc. and Nvidia Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 9.75% to 10.75% if each index closes at or above its coupon barrier level, 55% of its initial level, on the observation date for that quarter. The exact coupon rate will be set at pricing.

The notes will be called at par plus the coupon if each index closes at or above its initial level on any quarterly observation date beginning April 26, 2018.

The payout at maturity will be par unless either index finishes below the downside threshold level, 55% of its initial level, in which case investors will lose 1% for every 1% decline of the worse performing index from its initial level.

UBS Securities LLC and UBS Investment Bank are the bookrunners.

The notes (Cusip: 90270KNM7) will price on Oct. 26 and settle on Oct. 31.

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