By Jennifer Chiou
New York, July 21 - UBS AG, London Branch priced $300,000 of 0% trigger phoenix autocallable optimization securities due July 30, 2012 linked to the common stock of Goldman Sachs Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Goldman Sachs stock closes at or above the trigger price - 80% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 9.43% per year. Otherwise, no coupon will be paid that quarter.
The quarterly observation dates are Oct. 21, Jan. 23, 2012, April 23, 2012 and July 23, 2012.
If the share price is greater than or equal to the initial price on a quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Goldman Sachs shares finish at or above the trigger price, the payout at maturity will be par. Otherwise, investors will be exposed to the share price decline from the initial price.
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: | Goldman Sachs Group, Inc. (NYSE: GS)
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| Amount: | $300,000
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| Maturity: | July 30, 2012
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| Coupon: | Notes pay coupon at rate of 9.43% per year for each quarter that Goldman Sachs stock closes at or above trigger price on observation date
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par if final Goldman Sachs share price is greater than or equal to trigger price; otherwise, par plus stock return
|
| Call: | Automatically at par plus continent coupon if share price is greater than or equal to initial price on any quarterly observation date
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| Initial share price: | $135.58
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| Trigger price: | $108.46, 80% of initial share price
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| Pricing date: | July 21
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| Settlement date: | July 26
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
|
| Cusip: | 90267X510
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