By Susanna Moon
Chicago, May 20 - UBS AG, London Branch priced $1.38 million of trigger phoenix autocallable optimization securities due May 22, 2012 linked to Cree, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Cree stock closes at or above the trigger price - 65% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon of 16.55%.
If the stock closes at or above the initial price on any observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Cree shares finish at or above the trigger price, the payout at maturity will be par.
Investors will be exposed to any losses.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Cree, Inc. (Nasdaq: CREE)
|
| Amount: | $1.38 million
|
| Maturity: | May 22, 2012
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| Coupon: | 16.55% if Cree stock closes at or above the trigger price on observation date; payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If Cree shares finish at or above the trigger price, par; otherwise, exposure to losses
|
| Call option: | At par plus contingent coupon if share price at or above initial price on any quarterly observation date
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| Initial share price: | $41.81
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| Trigger price: | $27.18, 65% of initial share price
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| Pricing date: | May 18
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| Settlement date: | May 23
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.25%
|
| Cusip: | 90267X114
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