Published on 9/28/2009 in the Prospect News Structured Products Daily.
New Issue: UBS prices $230,000 14.15% reverse convertibles linked to U.S. Steel
By E. Janene Geiss
Philadelphia, Sept. 28 - UBS AG priced $230,000 of reverse convertible notes due Dec. 30, 2009 linked to the common stock of United States Steel Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes will pay 3.5375% for an annualized coupon of 14.15%. Interest is payable monthly.
The payout at maturity will be par unless U.S. Steel stock falls below the trigger price - 70% of the initial share price - during the life of the notes and finishes below the initial price, in which case investors will receive a number of U.S. Steel shares equal to $1,000 divided by the initial price.
UBS Securities LLC is the underwriter.
Issuer: | UBS AG
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Issue: | Reverse convertible notes
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Underlying stock: | United States Steel Corp. (NYSE: X)
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Amount: | $230,000
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Maturity: | Dec. 30, 2009
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Coupon: | 14.15%, payable monthly
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Price: | Par
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Payout at maturity: | If U.S. Steel stock falls below trigger price during life of notes and finishes below initial price, 21.4454 U.S. Steel shares; otherwise, par
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Initial share price: | $46.63
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Trigger price: | $32.64, 70% of initial share price
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Pricing date: | Sept. 25
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Settlement date: | Sept. 30
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Underwriter: | UBS Securities LLC
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Fees: | 2%
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