UBS to price 0% performance securities linked to six indexes

By Susanna Moon

Chicago, May 23 - UBS AG plans to price 0% performance securities with contingent protection due June 28, 2013 linked to an index basket, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the Dow Jones Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 25% weight, the Nikkei 225 index with a 20% weight, the Swiss Market index with a 5% weight, the S&P/ASX 200 index with a 5% weight and the MSCI Emerging Markets index with a 5% weight.

The payout at maturity will be par plus any gain on the index times a participation rate of 120% to 130%, with the exact rate to be set at pricing.

If the basket falls by up to 50% of its initial level during the life of the notes, investors will receive par. Otherwise, the payout will be par times the index performance.

The notes are expected to price June 25 and settle June 30.

UBS Financial Services Inc. and UBS Investment Bank will be the underwriters.

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