You will find a link to the accompanying preliminary pricing supplement for the Trigger PLUS above and links to the accompanying product supplement, accompanying index supplement, and accompanying prospectus for the Trigger PLUS under “Additional Information about UBS and the Trigger PLUS” in the preliminary pricing supplement, which you should read and understand prior to investing in the Trigger PLUS.
The issuer has filed a registration statement (including a prospectus as supplemented by a product supplement, an index supplement for various securities we may offer, including the Trigger PLUS, and the preliminary pricing supplement) with the Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the accompanying prospectus in that registration statement and the other documents the issuer has filed with the SEC, including the accompanying preliminary pricing supplement, the accompanying product supplement, and the accompanying index supplement, for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-833-653-0401. Our Central Index Key, or CIK, on the SEC web site is 0001114446.
Risk Considerations
The risks set forth below are discussed in more detail in the “Risk Factors” section in the preliminary pricing supplement. Please review those risk factors carefully prior to making an investment decision.
Risks Relating to Return Characteristics
■The Trigger PLUS do not pay interest or guarantee return of the stated principal amount and your investment in the Trigger PLUS may result in a loss.
■If the Trigger PLUS are redeemed early your return on the Trigger PLUS is limited to the early redemption payment.
■The leverage factor applies only if the Trigger PLUS are not redeemed early and you hold the Trigger PLUS to maturity.
■Early redemption risk.
■Owning the Trigger PLUS is not the same as owning the index constituent stocks.
Risks Relating to Characteristics of the Underlying Index
■Market risk.
■There can be no assurance that the investment view implicit in the Trigger PLUS will be successful.
■Changes that affect the underlying index, including regulatory changes, will affect the market value of, and return on, your Trigger PLUS.
■The underlying index reflects price return, not total return.
■UBS cannot control actions by the index sponsor and the index sponsor has no obligation to consider your interests.
Estimated Value Considerations
■The issue price you pay for the Trigger PLUS will exceed their estimated initial value.
■The estimated initial value is a theoretical price and the actual price that you may be able to sell your Trigger PLUS in any secondary market (if any) at any time after the pricing date may differ from the estimated initial value.
■Our actual profits may be greater or less than the differential between the estimated initial value and the issue price of the Trigger PLUS as of the pricing date.
Risks Relating to Liquidity and Secondary Market Price Considerations
■There may be little or no secondary market for the Trigger PLUS.
■The price at which UBS Securities LLC and its affiliates may offer to buy the Trigger PLUS in the secondary market (if any) may be greater than UBS’ valuation of the Trigger PLUS at that time, greater than any other secondary market prices provided by unaffiliated dealers (if any) and, depending on your broker, greater than the valuation provided on your customer account statements.
■Price of the Trigger PLUS prior to maturity.
■Impact of fees and the use of internal funding rates rather than secondary market credit spreads on secondary market prices.
Risks Relating to Hedging Activities and Conflicts of Interest
■Potential conflict of interest.
■Hedging and trading activities by the calculation agent and its affiliates could potentially affect the value of, and any amounts payable on, the Trigger PLUS.
■Potentially inconsistent research, opinions or recommendations by UBS.
■Potential UBS impact on price.
Risks Relating to General Credit Characteristics
■Credit risk of UBS.
■The Trigger PLUS are not bank deposits.
■If UBS experiences financial difficulties, FINMA has the power to open restructuring or liquidation proceedings in respect of, and/or impose protective measures in relation to, UBS, which proceedings or measures may have a material adverse effect on the terms and market value of the Trigger PLUS and/or the ability of UBS to make payments thereunder.
Risks Relating to U.S. Federal Income Taxation
■Uncertain tax treatment. Significant aspects of the tax treatment of the Trigger PLUS are uncertain. You should read carefully the section entitled “Tax Considerations” in the preliminary pricing supplement and the section entitled “Material U.S. Federal Income Tax Consequences”, including the section “— Securities Treated as Prepaid Derivatives or Prepaid Forwards”, in the accompanying product supplement and consult your tax advisor about your tax situation.
Underlying Index
For information about the underlying index, including historical performance information, see “Information About the Underlying Index” in the preliminary pricing supplement.