New Issue: UBS sells $2.86 million contingent income autocallables on three stocks

By Toni Weeks

San Luis Obispo, Calif., March 20 - UBS AG, London Branch priced $2,857,500 of contingent income autocallable securities due March 21, 2014 linked to the common stock of Alcoa Inc., DirecTV and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment at an annualized rate of 10.9% if shares of each underlying stock close at or above the downside threshold level, 70% of the initial share price, on the determination date for that quarter.

The notes will be called at par of $10 plus the contingent payment if shares of each underlying stock close at or above its respective initial share price on any of the determination dates other than the last one.

If the share prices of all underlying stocks finish at or above the downside threshold level, the payout at maturity will be par plus the contingent payment. Otherwise, investors will receive a number of shares of the worst-performing underlying stock equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent of those shares.

UBS Securities LLC is the agent.

Issuer:	UBS AG, London Branch
Issue:	Contingent income autocallable securities
Underlying stocks:	Alcoa Inc. (Symbol: AA), DirecTV (Symbol: DTV) and JPMorgan Chase & Co. (Symbol: JPM)
Amount:	$2,857,500
Maturity:	March 21, 2014
Contingent payment:	10.9% per year, payable quarterly if shares of each underlying stock close at or above downside threshold level on determination date for that quarter
Price:	Par of $10
Payout at maturity:	If all stocks finish at or above downside threshold level, par plus contingent payment; otherwise, a number of shares of worst-performing stock equal to $10 divided by initial share price or cash equivalent of those shares
Call:	Automatically at par plus contingent payment if closing share price of each stock is greater than or equal to its initial share price on June 18, Sept. 18 or Dec. 18, 2013
Initial share prices:	$8.56 for Alcoa, $54.75 for DirecTV and $49.51 for JPMorgan
Downside thresholds:	$5.99 for Alcoa, $38.33 for DirecTV and $34.66 for JPMorgan, 70% of initial share prices
Pricing date:	March 18
Settlement date:	March 21
Agent:	UBS Securities LLC with Morgan Stanley Smith Barney LLC as dealer
Fees:	1.5%
Cusip:	90271B785

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