By Susanna Moon
Chicago, Feb. 5 - UBS AG, London Branch priced $4.69 million of contingent income auto-callable securities due Feb. 4, 2016 linked to Microsoft Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
If Microsoft stock closes at or above the 80% downside threshold level on a quarterly determination date, the notes will pay a contingent payment at an annualized rate of 8.1% for that quarter.
If Microsoft stock closes at or above its initial share price on any of the first 11 quarterly determination dates, the notes will be redeemed at par plus the contingent payment.
If the Microsoft stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent quarterly payment.
Otherwise, investors will be fully exposed to any losses.
UBS Securities LLC is the agent, with Morgan Stanley Smith Barney LLC handling distribution.
Issuer: | UBS AG, London Branch
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Issue: | Contingent income autocallable securities
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Underlying index: | Microsoft Corp. (Symbol: MSFT)
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Amount: | $4,688,000
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Maturity: | Feb. 4, 2016
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Contingent payment: | 8.1% annualized if Microsoft stock closes at or above downside threshold level on determination date for that quarter
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Price: | Par of $10.00
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Payout at maturity: | Par plus contingent coupon if Microsoft stock finishes at or above downside threshold; otherwise full exposure to any losses
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Call: | At par plus contingent payment if Microsoft stock closes at or above initial share price on any of the first 11 determination dates
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Initial share price: | $27.93
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Trigger level: | $22.34, 80% of initial price
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Pricing date: | Feb. 1
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Settlement date: | Feb. 6
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Underwriter: | UBS Financial Services Inc. with Morgan Stanley Smith Barney LLC handling distribution
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Fees: | 1.9%
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Cusip: | 90271B389
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