By Marisa Wong
Madison, Wis., April 30 - UBS AG, London Branch priced $671,000 of airbag phoenix autocallable optimization securities due Oct. 31, 2015 linked to the American Depositary Receipts of Baidu, 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 11% per year if Baidu 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 Baidu shares close at or above the initial share price on any quarterly autocall observation date.
If the notes are not called and the final price of Baidu shares is greater than or equal to the conversion price, 80% of the initial share price, then the payout at maturity will be par. Otherwise, investors will receive a number of Baidu 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
|
| Issue: | Airbag phoenix autocallable optimization securities
|
| Underlying ADRs: | Baidu, Inc. (Symbol: BIDU)
|
| Amount: | $671,000
|
| Maturity: | Oct. 31, 2015
|
| Coupon: | Each month, notes pay contingent coupon at rate of 11% per year if Baidu shares close at or above coupon barrier on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to conversion price, par; otherwise, 8.2823 Baidu shares per $1,000 note
|
| Call: | Automatically at par if Baidu shares close at or above initial share price on any quarterly autocall observation date
|
| Initial share price: | $150.93
|
| Coupon barrier: | $105.65, 70% of initial share price
|
| Conversion price: | $120.74, 80% of initial share price
|
| Pricing date: | April 28
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| Settlement date: | April 30
|
| Agents: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
|
| Cusip: | 90272X141
|
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