The estimated initial value of the Securities as of the trade date is $9.69
for Securities linked to the underlying asset. The estimated initial value of the Securities was determined as of the close of
the relevant markets on the date of this final terms supplement by reference to UBS’ internal pricing models, inclusive
of the internal funding rate. For more information about secondary market offers and the estimated initial value of the Securities,
see “Key Risks - Fair value considerations” and “Key Risks - Limited or no secondary market and secondary market
price considerations” in this final terms supplement.
The Securities are not bank deposits and are not insured by the Federal
Deposit Insurance Corporation or any other governmental agency.
Additional
Information About UBS and the Securities
UBS has filed a registration statement (including a prospectus, as supplemented
by a product supplement and a prospectus supplement for the Securities) with the Securities and Exchange Commission, or SEC, for
the offering for which this final terms supplement relates. Before you invest, you should read these documents and any other documents
relating to the Securities that UBS has filed with the SEC for more complete information about UBS and this offering. You may
obtain these documents for free from the SEC website at www.sec.gov. Our Central Index Key, or CIK, on the SEC website is 0001114446.
Alternatively, UBS will arrange to send you these documents if you so request by calling toll-free 1-877-387-2275.
You may access these documents on the SEC website at www.sec.gov as
follows:
References to “UBS,”
“we,” “our” and “us” refer only to UBS AG and not to its consolidated subsidiaries. In
this document, “Contingent Absolute Return Autocallable Optimization Securities” or the “Securities”
refer to the Securities that are offered hereby. Also, references to the “prospectus supplement” mean the UBS
prospectus supplement, dated May 2, 2016, references to “CARAOS product supplement” mean the UBS product
supplement, dated May 2, 2016, relating to the Securities generally, and references to the “accompanying
prospectus” mean the UBS prospectus titled “Debt Securities and Warrants”, dated April 29, 2016.
This final terms supplement, together with the documents
listed above, contains the terms of the Securities and supersedes all other prior or contemporaneous oral statements as well as
any other written materials including pricing terms, correspondence, trade ideas, structures for implementation, sample structures,
brochures or other educational materials of ours. You should carefully consider, among other things, the matters set forth in
“Key Risks” and in “Risk Factors” in the CARAOS product supplement, as the Securities involve risks not
associated with conventional debt securities. We urge you to consult your investment, legal, tax, accounting and other advisors
before deciding to invest in the Securities.
UBS reserves the right to change the terms of, or reject
any offer to purchase, the Securities prior to their issuance. In the event of any changes to the terms of the Securities, UBS
will notify you and you will be asked to accept such changes in connection with your purchase. You may also choose to reject such
changes in which case UBS may reject your offer to purchase.
This amended and restated final terms supplement amends
and restates and supersedes the final terms supplement related hereto dated May 12, 2017 in its entirety.
Key
Risks
An investment in the Securities involves significant risks. Some
of the risks that apply to the Securities are summarized here and are comparable to the corresponding risks discussed in the “Key
Risks” section of the prospectus supplement, but we urge you to read the more detailed explanation of risks relating to the
Securities generally in the “Risk Factors” section of the CARAOS product supplement. We also urge you to
consult your investment, legal, tax, accounting and other advisors before you invest in the Securities.
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Risk
of loss at maturity
- The Securities differ from ordinary debt securities in that
UBS will not make periodic interest payments or necessarily pay the full principal amount
of the Securities at maturity. If the Securities are not called, UBS will only pay you
the principal amount of your Securities plus a return equal to the product of the principal
amount multiplied by the contingent absolute return if the final price of the underlying
asset is greater than or equal to the trigger price and will only make such payment at
maturity. If the Securities are not called and the final price is below the trigger price,
the contingent absolute return will not apply and you will lose some or all of your initial
investment in an amount proportionate to the decline in the price of the underlying asset
from the trade date to the final valuation date.
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Higher
call return rates are generally associated with a greater risk of loss
- Greater
expected volatility with respect to the underlying asset reflects a higher expectation
as of the trade date that the price of the underlying asset could close below its trigger
price on the final valuation date of the Securities. This greater expected risk will
generally be reflected in a higher call return rate for that Security. However, the underlying
asset’s volatility can change significantly over the term of the Securities and
the price of the underlying asset could fall sharply, which could result in a significant
loss of principal.
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The
contingent absolute return, and any contingent repayment of your principal, applies only
at maturity
- You should be willing to hold your Securities to maturity. If you are
able to sell your Securities prior to maturity in the secondary market, you may have
to sell them at a loss relative to your initial investment even if the underlying asset
price is above the trigger price.
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Your
potential return on the Securities is limited
- The return potential of the Securities
resulting from an automatic call is limited to the call return regardless of the appreciation
of the underlying asset. In addition, because the call return increases the longer the
Securities have been outstanding, the call price payable on earlier observation dates
is less than the call price payable on later observation dates. The earlier a Security
is called, the lower your return will be. If the Securities are not called, your potential
gain on the Securities from the contingent absolute return will be limited by the trigger
price. Because your ability to receive a return on the Securities equal to the contingent
absolute return is available only if the Securities are not called and if the final price
is not less than the trigger price, you will not benefit from any further depreciation
of the final price below the trigger price and instead will be exposed to the negative
underlying return and will lose some or all of your investment.
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Credit
risk of UBS
- The Securities are unsubordinated, unsecured debt obligations of the
issuer, UBS, and are not, either directly or indirectly, an obligation of any third party.
Any payment to be made on the Securities, including any repayment of principal, depends
on the ability of UBS to satisfy its obligations as they come due. As a result, the actual
and perceived creditworthiness of UBS may affect the market value of the Securities and,
in the event UBS were to default on its obligations, you may not receive any amounts
owed to you under the terms of the Securities and you could lose your entire investment.
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No
interest payments
- UBS will not pay interest with respect to the Securities.
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Reinvestment
risk
- If your Securities are called early, the term of the Securities will be reduced
and you will not receive any payment on the Securities after the applicable call settlement
date. There is no guarantee that you would be able to reinvest the proceeds from an automatic
call of the Securities at a comparable rate of return for a similar level of risk. To
the extent you are able to reinvest such proceeds in an investment comparable to the
Securities, you may incur transaction costs such as dealer discounts and hedging costs
built into the price of the new securities. Because the Securities may be called as early
as the first observation date after issuance, you should be prepared in the event the
Securities are called early.
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Market
risk
- The price of the underlying asset can rise or fall sharply due to factors
specific to that underlying asset and (i) in the case of common stock or American depositary
shares, its issuer (the “underlying asset issuer”) or (ii) in the case of
an exchange traded fund, the securities, futures contracts or physical commodities constituting
the assets of that underlying asset. These factors include price volatility, earnings,
financial conditions, corporate, industry and regulatory developments, management changes
and decisions and other events, as well as general market factors, such as general market
volatility and levels, interest rates and economic and political conditions. You, as
an investor in the Securities, should make your own investigation into the underlying
asset issuer and the underlying asset for your Securities.
We urge you to review financial
and other information filed periodically by the underlying asset issuer with the SEC.
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Fair
value considerations.
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The
issue price you pay for the Securities exceeds their estimated initial value
- The
issue price you pay for the Securities exceeds their estimated initial value as of the
trade date due to the inclusion in the issue price of the underwriting discount, hedging
costs, issuance costs and projected profits. As of the close of the relevant markets
on the trade date, we determined the estimated initial value of the Securities by reference
to our internal pricing models and it is set forth in this final terms supplement. The
pricing models used to determine the estimated initial value of the Securities incorporate
certain variables, including the price, volatility and expected dividends on the underlying
asset, prevailing interest rates, the term of the Securities and our internal funding
rate. Our internal funding rate is typically lower than the rate we would pay to issue
conventional fixed or floating rate debt securities of a similar term. The underwriting
discount, hedging costs, issuance costs, projected profits and the difference in rates
will reduce the economic value of the Securities to you. Due to these factors, the estimated
initial value of the Securities as of the trade date is less than the issue price you
pay for the Securities.
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The
estimated initial value is a theoretical price; the actual price that you may be able
to sell your Securities in any secondary market (if any) at any time after the trade
date may differ from the estimated initial value
- The value of your Securities at
any time will vary based on many factors, including the factors described above and in
“- Market risk” above and is impossible to predict. Furthermore, the pricing
models that we use are proprietary and rely in part on certain assumptions about future
events, which may prove to be incorrect. As a result, after the trade date, if you attempt
to sell the Securities in the secondary market, the actual value you would receive may
differ, perhaps materially, from the estimated initial value of the Securities determined
by reference to our internal pricing models. The estimated initial value of the Securities
does not represent a minimum or maximum price at which we or any of our affiliates would
be willing to purchase your Securities in any secondary market at any time.
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Our
actual profits may be greater or less than the differential between the estimated initial
value and the issue price of the Securities as of the trade date
- We may determine
the economic terms of the Securities, as well as hedge our obligations, at least in part,
prior to pricing the Securities on the trade date. In addition, there may be ongoing
costs to us to maintain and/or adjust any hedges and such hedges are often imperfect.
Therefore, our actual profits (or potentially, losses) in issuing the Securities cannot
be determined as of the trade date and any such differential between the estimated initial
value and the issue price of the Securities as of the trade date does not reflect our
actual profits. Ultimately, our actual profits will be known only at the maturity of
the Securities.
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Limited
or no secondary market and secondary market price considerations.
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There
may be little or no secondary market for the Securities
- The Securities will not
be listed or displayed on any securities exchange or any electronic communications network.
There can be no assurance that a secondary market for the Securities will develop. UBS
Securities LLC and its affiliates may make a market in each offering of the Securities,
although they are not required to do so and may stop making a market at any time. If
you are able to sell your Securities prior to maturity, you may have to sell them at
a substantial loss. The estimated initial value of the Securities does not represent
a minimum or maximum price at which we or any of our affiliates would be willing to purchase
your Securities in any secondary market at any time.
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The
price at which UBS Securities LLC and its affiliates may offer to buy the Securities
in the secondary market (if any) may be greater than UBS’ valuation of the Securities
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
- For a limited period of time following the issuance
of the Securities, UBS Securities LLC or its affiliates may offer to buy or sell such
Securities at a price that exceeds (i) our valuation of the Securities at that time based
on our internal pricing models, (ii) any secondary market prices provided by unaffiliated
dealers (if any) and (iii) depending on your broker, the valuation provided on customer
account statements. The price that UBS Securities LLC may initially offer to buy such
Securities following issuance will exceed the valuations indicated by our internal pricing
models due to the inclusion for a limited period of time of the aggregate value of the
underwriting discount, hedging costs, issuance costs and theoretical projected trading
profit. The portion of such amounts included in our price will decline to zero on a straight
line basis over a period ending no later than the date specified under “Supplemental
Plan of Distribution (Conflicts of Interest); Secondary Markets (if any).” Thereafter,
if UBS Securities LLC or an affiliate makes secondary markets for the Securities, it
will do so at prices that reflect our estimated value determined by reference to our
internal pricing models at that time. The temporary positive differential relative to
our internal pricing models arises from requests from and arrangements made by UBS Securities
LLC with the selling agents of structured debt securities such as the Securities. As
described above, UBS Securities LLC and its affiliates are not required to make a market
for the Securities and may stop making a market at any time. The price at which UBS Securities
LLC or an affiliate may make secondary markets at any time (if at all) will also reflect
its then current bid-ask spread for similar sized trades of structured debt securities.
UBS Financial Services Inc. and UBS Securities LLC reflect this temporary positive differential
on their customer statements. Investors should inquire as to the valuation provided on
customer account statements provided by unaffiliated dealers.
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Price
of Securities prior to maturity
- The market price of the Securities will be influenced
by many unpredictable and interrelated factors, including the price of the underlying
asset; the volatility of the underlying asset; the dividend rate paid on the underlying
asset; the time remaining to the maturity of the Securities; interest rates in the markets;
geopolitical conditions and economic, financial, political, force majeure and regulatory
or judicial events; the creditworthiness of UBS and the then current bid-ask spread for
the Securities.
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Impact
of fees and the use of internal funding rates rather than secondary market credit spreads
on secondary market prices
- All other things being equal, the use of the internal
funding rates described above under “- Fair value considerations” as well
as the inclusion in the issue price of the underwriting discount, hedging costs, issuance
costs and any projected profits are, subject to the temporary mitigating effect of UBS
Securities LLC’s and its affiliates’ market making premium, expected to reduce
the price at which you may be able to sell the Securities in any secondary market.
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Owning
the Securities is not the same as owning the underlying asset
- The return on your
Securities may not reflect the return you would realize if you actually owned the underlying
asset. For instance, you will not receive or be entitled to receive any dividend payments
or other distributions on the underlying asset over the term of your Securities. Furthermore,
the underlying asset may appreciate substantially during the term of your Securities
and you will not participate in such appreciation even though you may be subject to the
underlying asset’s decline over the term of the Securities.
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No
assurance that the investment view implicit in the Securities will be successful
- It is impossible to predict whether and the extent to which the price of the underlying
asset will rise or fall. The price of the underlying asset will be influenced by complex
and interrelated political, economic, financial and other factors that affect the issuer
of the underlying asset or, for Securities linked to exchange traded funds, the underlying
asset constituent stock issuers. You should be willing to accept the risks of owning
equities in general and the underlying asset in particular, and to assume the risk that,
if the Securities are not automatically called, you may lose some or all of your initial
investment.
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There
is no affiliation between the underlying asset issuer, or for Securities linked to exchange
traded funds, the issuers of the constituent stocks comprising the underlying asset (the
“underlying asset constituent stock issuers”), and UBS, and UBS is not responsible
for any disclosure by such issuer(s)
- We and our affiliates may currently, or from
time to time in the future engage in business with the underlying asset issuer or, if
applicable, any underlying asset constituent stock issuers. However, we are not affiliated
with the underlying asset issuer or any underlying asset constituent stock issuers and
are not responsible for such issuer’s public disclosure of information, whether contained
in SEC filings or otherwise. You, as an investor in the Securities, should make your
own investigation into the underlying asset issuer or, if applicable, each underlying
asset constituent stock issuer. Neither the underlying asset issuer nor any underlying
asset constituent stock issuer is involved in the Securities offered hereby in any way
and has no obligation of any sort with respect to your Securities. Such issuer(s) have
no obligation to take your interests into consideration for any reason, including when
taking any corporate actions that might affect the value of your Securities.
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The
calculation agent can make adjustments that affect the payment to you at maturity
- For certain corporate events affecting the underlying asset, the calculation agent
may make adjustments to the initial price, the trigger price and/or the final price of
the underlying asset. However, the calculation agent will not make an adjustment in response
to all events that could affect the underlying asset. If an event occurs that does not
require the calculation agent to make an adjustment, the value of the Securities may
be materially and adversely affected. In addition, all determinations and calculations
concerning any such adjustments will be made by the calculation agent. You should be
aware that the calculation agent may make any such adjustment, determination or calculation
in a manner that differs from that discussed in the CARAOS product supplement as necessary
to achieve an equitable result. In the case of common stock or American depositary shares,
following certain corporate events relating to the issuer of the underlying asset where
such issuer is not the surviving entity, the amount of cash you receive at maturity (if
any) may be based on the common stock or American depositary share of a successor to
the underlying asset issuer in combination with any cash or any other assets distributed
to holders of the underlying asset in such corporate event. Additionally, if the issuer
of the underlying asset becomes subject to (i) a reorganization event whereby the underlying
asset is exchanged solely for cash, (ii) a merger or consolidation with UBS or any of
its affiliates or (iii) an underlying equity is delisted or otherwise suspended from
trading, the amount you receive at maturity may be based on the common stock or American
depository shares issued by another company. In the case of an exchange traded fund,
following a suspension from trading or if an exchange traded fund is discontinued, the
amount you receive at maturity may be based on a share of another exchange traded fund.
The occurrence of these corporate events and the consequent adjustments may materially
and adversely affect the value of the Securities. For more information, see the section
“General Terms of the Securities — Antidilution Adjustments” beginning
on page PS-32 of the CARAOS product supplement. Regardless of any of the events discussed
above, any payment on the Securities is subject to the creditworthiness of UBS.
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Potential
UBS impact on the market price of the underlying asset
- Trading or transactions
by UBS or its affiliates in the underlying asset and/or over- the-counter options, futures
or other instruments with returns linked to the performance of the underlying asset may
adversely affect the market price of the underlying asset and, therefore, the market
value of your Securities.
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Potential
conflict of interest
- UBS and its affiliates may engage in business with the issuer
of the underlying asset or, for Securities linked to exchange traded funds, the underlying
asset constituent stock issuers, which may present a conflict between the obligations
of UBS and you, as a holder of the Securities. The calculation agent, an affiliate of
UBS, will determine whether the final price is below the trigger price and accordingly
the payment at maturity on your Securities. The calculation agent may also postpone the
determination of the closing price of the underlying asset if a market disruption event
occurs and is continuing on any observation date (including the final valuation date)
and may make adjustments to the initial price, trigger price, the final price and/or
the underlying asset itself for certain corporate events affecting the underlying asset.
For more information, see the section “General Terms of the Securities —
Antidilution Adjustments” beginning on page PS-32 of the CARAOS product supplement.
As UBS determines the economic terms of the Securities, including the call return rate
and trigger price, and such terms include hedging costs, issuance costs and projected
profits, the Securities represent a package of economic terms. There are other potential
conflicts of interest insofar as an investor could potentially get better economic terms
if that investor entered into exchange-traded and/or OTC derivatives or other instruments
with third parties, assuming that such instruments were available and the investor had
the ability to assemble and enter into such instruments.
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Potentially
inconsistent research, opinions or recommendations by UBS
- UBS and its affiliates
may publish research or express opinions or provide recommendations that are inconsistent
with purchasing or holding the Securities, and which may be revised without notice. Any
research, opinions or recommendations expressed by UBS or its affiliates may not be consistent
with each other and may influence the value of the Securities. Investors should make
their own independent investigation of the merits of investing in the Securities and
the underlying asset to which the Securities are linked.
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Under
certain circumstances, the Swiss Financial Market Supervisory Authority (FINMA) has the
power to take actions that may adversely affect the Securities
- Pursuant to article
25 et seq. of the Swiss Banking Act, FINMA has broad statutory powers to take measures
and actions in relation to UBS if it (i) is overindebted, (ii) has serious liquidity
problems or (iii) fails to fulfill the applicable capital adequacy provisions after expiration
of a deadline set by FINMA. If one of these prerequisites is met, the Swiss Banking Act
grants significant discretion to FINMA to open restructuring proceedings or liquidation
(bankruptcy) proceedings in respect of, and/or impose protective measures in relation
to, UBS. In particular, a broad variety of protective measures may be imposed by FINMA,
including a bank moratorium or a maturity postponement, which measures may be ordered
by FINMA either on a stand-alone basis or in connection with restructuring or liquidation
proceedings. In a restructuring proceeding, the resolution plan may, among other things,
(a) provide for the transfer of UBS’s assets or a portion thereof, together with
debts and other liabilities, and contracts of UBS, to another entity, (b) provide for
the conversion of UBS’s debt and/ or other obligations, including its obligations
under the Securities, into equity, and/or (c) potentially provide for haircuts on obligations
of UBS, including its obligations under the Securities. Although no precedent exists,
if one or more measures under the revised regime were imposed, such measures may have
a material adverse effect on the terms and market value of the Securities and/or the
ability of UBS to make payments thereunder.
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Dealer
incentives
- UBS and its affiliates may act as a principal, agent or dealer in connection
with the sale of the Securities. Such affiliates, including the sales representatives,
will derive compensation from the distribution of the Securities and such compensation
may serve as an incentive to sell these Securities instead of other investments. We will
pay total underwriting compensation of 1.50% per Security to any of our affiliates acting
as agents or dealers in connection with the distribution of the Securities. Given that
UBS Securities LLC and its affiliates temporarily maintain a market making premium, it
may have the effect of discouraging UBS Securities LLC and its affiliates from recommending
sale of your Securities in the secondary market.
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Uncertain
tax treatment
- Significant aspects of the tax treatment of the Securities are uncertain.
You should read carefully the sections entitled “What are the Tax Consequences of
the Securities” in the prospectus supplement and “Supplemental U.S. Tax Considerations”
beginning on page PS-45 of the CARAOS product supplement and consult your tax advisor
about your tax situation.
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Information
about the Underlying Asset
All disclosures regarding the underlying asset are derived from publicly
available information. UBS has not conducted any independent review or due diligence of any publicly available information with
respect to the underlying asset.
You should make your own investigation into the underlying asset.
The underlying asset will be registered under the Securities Act of 1933,
the Investment Company Act of 1940 and/or the Securities Exchange Act of 1934. Information filed by the issuer of the underlying
asset with the SEC can be reviewed electronically through a website maintained by the SEC. The address of the SEC’s website
is http://www.sec.gov. Information filed with the SEC by the issuer of the underlying asset under the Exchange Act can be located
by reference to its SEC file number provided below. In addition, information filed with the SEC can be inspected and copied at
the Public Reference Section of the SEC, 100 F Street, N.E., Room 1580, Washington, D.C. 20549. Copies of this material can also
be obtained from the Public Reference Section, at prescribed rates.
Kinder
Morgan, Inc.
According to publicly available information, Kinder Morgan, Inc. (“Kinder
Morgan”) is an energy infrastructure company in North America. Kinder Morgan operates pipelines that transport natural gas,
refined petroleum products, crude oil, condensate, carbon dioxide and other products. Kinder Morgan has terminals that transload
and store petroleum products, ethanol and chemicals and handle such products as coal, petroleum coke and steel. On November 26,
2014, Kinder Morgan completed its acquisition, pursuant to three separate merger agreements, of all of the outstanding common
units of Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and El Paso Pipeline Partners, L.P. (NYSE: EPB) and all of the outstanding
shares of Kinder Morgan Management, LLC (NYSE: KMR) that Kinder Morgan did not already own. Kinder Morgan operates six reportable
business segments: Natural Gas Pipelines, CO2, Terminals, Products Pipelines, Kinder Morgan Canada and Other. The Natural Gas
Pipelines segment includes the ownership and operation of natural gas pipeline and storage systems, associated natural gas and
crude oil gathering systems and natural gas processing and treating facilities and of natural gas liquids (NGL) fractionation
facilities and transportation systems. The CO2 segment produces, transports and markets CO2 to oil fields, has ownership interests
in and/or operates oil fields and gas processing plants and a crude oil pipeline system in West Texas. The Terminals segment owns
and/or operates liquids and bulk terminal facilities and rail transloading and materials handling facilities located throughout
the U.S. and portions of Canada that transload and store refined petroleum products, crude oil, condensate, and bulk products
and of Jones Act tankers. The Products Pipelines segment owns and operates refined petroleum products and crude oil and condensate
pipelines and associated product terminals and petroleum pipeline transmix facilities. The Kinder Morgan Canada Segment owns and
operates the Trans Mountain pipeline system that transports crude oil and refined petroleum products from Edmonton, Alberta, Canada
to marketing terminals and refineries in British Columbia, Canada and the state of Washington, plus the Jet Fuel aviation turbine
fuel pipeline that serves the Vancouver (Canada) International Airport. The Other segment includes other miscellaneous assets
and liabilities. In February 2011, Kinder Morgan Holdco LLC was converted into Kinder Morgan, Inc, and the unitholders of Kinder
Morgan Holdco LLC became stockholders of Kinder Morgan. Accordingly, Kinder Morgan’s Class P common stock commenced trading on
the New York Stock Exchange on February 11, 2011 and therefore has a limited historical performance. For this reason, available
information for the first calendar quarter of 2011 includes data for the period from February 11, 2011 through March 31, 2011.
Accordingly, the “Quarterly Closing High,” “Quarterly Closing Low” and “Quarterly Close” data indicated
are for this shortened period only and do not reflect complete data for the first calendar quarter of 2011. Information filed
by Kinder Morgan with the SEC under the Exchange Act can be located by reference to its SEC file number: 001-35081, or its CIK
Code: 0001506307. Kinder Morgan’s website is http://www.kindermorgan.com. Kinder Morgan’s Class P common stock is listed on the
New York Stock Exchange under the ticker symbol “KMI.”
Information from outside sources is not incorporated by reference in, and
should not be considered part of, this final terms supplement or any accompanying prospectus. UBS has not conducted any independent
review or due diligence of any publicly available information with respect to the underlying asset.
Historical Information
The following table sets forth the quarterly high and low closing prices
for Kinder Morgan’s common stock, based on daily closing prices on the primary exchange for Kinder Morgan. We obtained the closing
prices below from Bloomberg Professional service (“Bloomberg”), without independent verification. The closing prices
may be adjusted by Bloomberg for corporate actions such as stock splits, public offerings, mergers and acquisitions, spin-offs,
extraordinary dividends, delistings and bankruptcy. UBS has not undertaken an independent review or due diligence of any publicly
available information obtained from Bloomberg. Kinder Morgan’s closing price on May 12, 2017 was $19.91.
Past performance of
the underlying asset is not indicative of the future performance of the underlying asset.
Quarter Begin
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Quarter End
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Quarterly High
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Quarterly Low
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Quarterly Close
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07/02/2012
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09/28/2012
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$36.43
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$32.74
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$35.52
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10/01/2012
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12/31/2012
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$36.25
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$32.03
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$35.33
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01/02/2013
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03/28/2013
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$38.68
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$36.11
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$38.68
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04/01/2013
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06/28/2013
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$41.09
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$36.28
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$38.15
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07/01/2013
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09/30/2013
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$40.31
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$34.72
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$35.57
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10/01/2013
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12/31/2013
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$36.49
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$32.58
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$36.00
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01/02/2014
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03/31/2014
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$36.39
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$30.96
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$32.49
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04/01/2014
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06/30/2014
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$36.26
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$32.15
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$36.26
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07/01/2014
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09/30/2014
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$41.60
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$35.37
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$38.34
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10/01/2014
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12/31/2014
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$43.01
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$34.50
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$42.31
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01/02/2015
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03/31/2015
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$42.81
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$39.77
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$42.06
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04/01/2015
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06/30/2015
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$44.57
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$38.36
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$38.39
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07/01/2015
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09/30/2015
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$38.19
|
$26.16
|
$27.68
|
10/01/2015
|
12/31/2015
|
$32.68
|
$14.54
|
$14.92
|
01/04/2016
|
03/31/2016
|
$18.90
|
$12.01
|
$17.86
|
04/01/2016
|
06/30/2016
|
$19.16
|
$16.85
|
$18.72
|
07/01/2016
|
09/30/2016
|
$23.13
|
$18.29
|
$23.13
|
10/03/2016
|
12/30/2016
|
$23.01
|
$19.71
|
$20.71
|
01/03/2017
|
03/31/2017
|
$22.94
|
$20.94
|
$21.74
|
04/03/2017*
|
05/16/2017*
|
$21.75
|
$19.76
|
$19.80
|
* As of the date of this final terms supplement available information for
the second calendar quarter of 2017 includes data for the period from April 3, 2017 through May 16, 2017. Accordingly, the “Quarterly
High,” “Quarterly Low” and “Quarterly Close” data indicated are for this shortened period only and
do not reflect complete data for the second calendar quarter of 2017.
The graph below illustrates the performance of Kinder
Morgan’s common stock for the period indicated, based on information from Bloomberg. The solid line represents the trigger price
of $15.93, which is equal to 80.00% of the closing price on May 12, 2017.
Past performance of the underlying asset is not indicative
of the future performance of the underlying asset.
Supplemental
Plan of Distribution (Conflicts of Interest); Secondary Markets (if any)
We have agreed to sell to UBS Securities LLC and UBS Securities
LLC has agreed to purchase, all of the Securities at the issue price to the public less the underwriting discount indicated
on the cover of this final terms supplement, the document filed pursuant to Rule 424(b) containing the final pricing terms
of the Securities. UBS Securities LLC has agreed to resell all of the Securities to UBS Financial Services Inc. at a discount
from the issue price to the public equal to the underwriting discount indicated on the cover of this final terms supplement.
Conflicts of Interest
- Each of UBS Securities LLC and UBS Financial
Services Inc. is an affiliate of UBS and, as such, has a “conflict of interest” in this offering within the meaning
of FINRA Rule 5121. In addition, UBS will receive the net proceeds (excluding the underwriting discount) from the initial public
offering of the Securities and, thus creates an additional conflict of interest within the meaning of FINRA Rule 5121. Consequently,
the offering is being conducted in compliance with the provisions of Rule 5121. Neither UBS Securities LLC nor UBS Financial Services
Inc. is permitted to sell Securities in the offering to an account over which it exercises discretionary authority without the
prior specific written approval of the account holder.
UBS Securities LLC and its affiliates may offer to buy or sell the Securities
in the secondary market (if any) at prices greater than UBS’ internal valuation
- The value of the Securities at any
time will vary based on many factors that cannot be predicted. However, the price (not including UBS Securities LLC’s or
any affiliate’s customary bid-ask spreads) at which UBS Securities LLC or any affiliate would offer to buy or sell the Securities
immediately after the trade date in the secondary market is expected to exceed the estimated initial value of the Securities as
determined by reference to our internal pricing models. The amount of the excess will decline to zero on a straight line basis
over a period ending no later than 1 month after the trade date, provided that UBS Securities LLC may shorten the period based
on various factors, including the magnitude of purchases and other negotiated provisions with selling agents. Notwithstanding
the foregoing, UBS Securities LLC and its affiliates are not required to make a market for the Securities and may stop making
a market at any time. For more information about secondary market offers and the estimated initial value of the Securities, see
“Key Risks - Fair value considerations” and “Key Risks - Limited or no secondary market and secondary market
price considerations” in this final terms supplement.