By Toni Weeks
San Diego, March 9 - UBS AG, London Branch priced $1 million of 0% trigger phoenix autocallable optimization securities due March 9, 2012 linked to the common stock of Deckers Outdoor Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Deckers stock closes at or above the trigger price - 65% of the initial share price - on any of four quarterly observation dates, the issuer will pay a contingent coupon of 17.7%. Otherwise, no coupon will be paid for that quarter.
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 Decker shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. 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
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| Underlying stock: | Deckers Outdoor Corp. (Symbol: DECK)
|
| Amount: | $1 million
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| Maturity: | March 9, 2012
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| Coupon: | 17.7% per year, payable quarterly only if Deckers stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If Deckers shares finish at or above the trigger price, par plus contingent coupon; otherwise, exposure to losses
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| 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: | $86.3740
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| Trigger price: | $56.1431, 65% of initial share price
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| Pricing date: | March 7
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| Settlement date: | March 10
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
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| Cusip: | 90267G236
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