The graph below illustrates the daily performance of the common stock
of Tenet Healthcare from January 3, 2005 through April 17, 2015, based on information from Bloomberg, without independent
verification. The dotted lines represent the Conversion Price of
$41.10, which is equal to 80% of the closing price on April 17, 2015, and the Coupon Barrier of $35.97, which is equal to 70% of the
closing price on April 17, 2015.
Past performance of the Underlying Stock is not indicative of the
future performance of the Underlying Stock.
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Supplemental Underwriting Information |
We have agreed to indemnify UBS and JPMS against liabilities under
the Securities Act of 1933, as amended, or to contribute to payments
that UBS may be required to make relating to these liabilities as
described in the prospectus supplement and the prospectus. We have
agreed that UBS may sell all or a part of the Securities that it
purchases from us to the public or its affiliates at the price to
public indicated on the cover hereof.
Subject to regulatory constraints, JPMS intends to offer to purchase
the Securities in the secondary market, but it is not required
to do so.
We or our affiliates may enter into swap agreements or related hedge
transactions with one of our other affiliates or unaffiliated
counterparties in connection with the sale of the Securities, and
JPMS and/or an affiliate may earn additional income as a result of
payments pursuant to the swap or related hedge transactions. See
"Supplemental Use of Proceeds" in this pricing supplement and "Use of
Proceeds and Hedging" beginning on page PS-43 of the accompanying
product supplement no. UBS-1a-I.
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JPMS's Estimated Value of the Securities |
For each offering of the Securities, JPMS's estimated value of the
Securities set forth on the cover of this pricing supplement is equal
to the sum of the values of the following hypothetical components:
(1) a fixed-income debt component with the same maturity as the
Securities, valued using our internal funding rate for structured
debt described below, and (2) the derivative or derivatives
underlying the economic terms of the Securities. JPMS's estimated
value does not represent a minimum price at which JPMS would be
willing to buy your Securities in any secondary market (if any
exists) at any time. The internal funding rate used in the
determination of JPMS's estimated value generally represents a
discount from the credit spreads for our conventional fixed-rate
debt. For additional information, see "Key Risks Risks Relating to
the Securities Generally JPMS's Estimated Value Is Not Determined
by Reference to Credit Spreads for Our Conventional Fixed-Rate Debt."
The value of the derivative or derivatives underlying the economic
terms of the Securities is derived from JPMS's internal pricing
models. These models are dependent on inputs such as the traded
market prices of comparable derivative instruments and on various
other inputs, some of which are market-observable, and which can
include volatility, dividend rates, interest rates and other factors,
as well as assumptions about future market events and/or
environments. Accordingly, JPMS's estimated value of the Securities
is determined when the terms of the Securities are set based on
market conditions and other relevant factors and assumptions existing
at that time. See "Key Risks Risks Relating to the Securities
Generally JPMS's Estimated Value Does Not Represent Future Values
of the Securities and May Differ from Others' Estimates."
JPMS's estimated value of the Securities is lower than the original
issue price of the Securities because costs associated with selling,
structuring and hedging the Securities are included in the original
issue price of the Securities. These costs include the selling
commissions paid to UBS, the projected profits, if any, that our
affiliates expect to realize for assuming risks inherent in hedging
our obligations under the Securities and the estimated cost of
hedging our obligations under the Securities. Because hedging our
obligations entails risk and may be influenced by market forces
beyond our control, this hedging may result in a profit that is more
or less than expected, or it may result in a loss. We