New Issue: UBS prices $1.5 million 15.39% reverse convertibles linked to Aflac

By Angela McDaniels

Tacoma, Wash., March 16 - UBS AG, London Branch priced $1.5 million of reverse convertible notes due Sept. 21, 2011 linked to the common stock of Aflac Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes carry a coupon of 15.39% per year. Interest is payable monthly.

The payout at maturity will be par unless Aflac stock closes below the trigger price - 75% of the initial share price - during the life of the notes and closes below the initial share price on the final determination date, in which case the payout will be a number of Aflac shares equal to $1,000 divided by the initial share price.

UBS Securities LLC and UBS Investment Bank are the agents.

Issuer:	UBS AG, London Branch
Issue:	Reverse convertible notes
Underlying stock:	Aflac Inc. (NYSE: AFL)
Amount:	$1.5 million
Maturity:	Sept. 21, 2011
Coupon:	15.39%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Aflac shares fall below trigger price during life of notes and finish below initial price, in which case 19.7355 Aflac shares
Initial price:	$50.67
Trigger price:	$38.00, 75% of initial price
Pricing date:	March 16
Settlement date:	March 21
Agents:	UBS Securities LLC, UBS Investment Bank
Fees:	0.5%
Cusip:	902674ER7

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