By Wendy Van Sickle
Columbus, Ohio, June 17 – UBS AG London Branch priced $1.32 million of phoenix autocallable notes with memory coupon due July 1, 2020 linked to NYMEX-traded Light Sweet Crude Oil futures contract, according to a 424B2 filing with the Securities and Exchange Commission.
If the commodity closes at or above the barrier level, 65.35% of the initial level, on a quarterly observation date, the notes will pay a contingent coupon for that quarter at an annualized rate of 10%, plus any previously unpaid contingent interest payments.
The notes will be called at par if the commodity closes at or above the initial share price on any observation date other than the final date.
The payout at maturity will be par plus the final coupon and any previously unpaid coupons unless the commodity finishes below the 65.35% trigger level, in which case investors will lose 1% for each 1% decline of the commodity from its initial level.
UBS Investment Bank and J.P. Morgan Securities LLC are the agents.
| Issuer: | UBS AG London Branch
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| Issue: | Phoenix autocallable notes with memory coupon
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| Underlying commodity: | NYMEX-traded Light Sweet Crude Oil futures contract,
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| Amount: | $1.32 million
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| Maturity: | July 1, 2020
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| Coupon: | 10% annualized, plus any previously unpaid coupons, if index closes at or above barrier level on quarterly observation date
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon and previously unpaid coupons if index finishes at or above trigger level; otherwise, par plus index return, with full exposure to losses
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| Call: | At par plus contingent coupon and previously unpaid coupons if index closes at or above initial level on a quarterly observation date
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| Initial price: | $52.51
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| Barrier/trigger price: | $34.32, 65.35% of initial price
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| Pricing date: | June 14
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| Settlement date: | June 19
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| Agents: | UBS Investment Bank and J.P. Morgan Securities LLC
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| Fees: | 1%
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| Cusip: | 90270KF61
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