New Issue: UBS prices $147,000 of 10.75% annualized reverse convertibles linked to General Electric

By Susanna Moon

Chicago, July 13 - UBS AG priced $147,000 of 10.75% annualized reverse convertible notes due July 14, 2010 linked to General Electric Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par in cash unless the stock falls below the trigger price - 65% of the initial price - during the life of the notes and finishes below the initial price, in which case investors will receive a number of General Electric shares equal to $1,000 divided by the initial price.

UBS Investment Bank is the underwriter.

Issuer:	UBS AG
Issue:	Reverse convertible notes
Underlying stock:	General Electric Co. (NYSE: GE)
Amount:	$147,000
Maturity:	July 14, 2010
Coupon:	10.75%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless General Electric shares fall below the trigger price during the life of the notes and finish below the initial price, in which case 92.764 General Electric shares
Initial price:	$10.78
Trigger price:	$7.01, or 65% of initial price
Pricing date:	July 10
Settlement date:	July 15
Agent:	UBS Investment Bank
Fees:	3%

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