New Issue: UBS prices $3.41 million return optimization securities tied to gold

By Marisa Wong

Madison, Wis., Feb. 14 - UBS AG, Jersey Branch priced $3.41 million of 0% return optimization securities due Aug. 15, 2013 linked to the price of gold, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10 plus triple any percentage increase in the price of gold, subject to a maximum return of 25%. Investors will be fully exposed to losses if the price of gold falls.

UBS Financial Services Inc. and UBS Investment Bank are the agents.

Issuer:	UBS AG, Jersey Branch
Issue:	Return optimization securities
Underlying commodity:	Gold
Amount:	$3,413,000
Maturity:	Aug. 15, 2013
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 300% of any gain in gold price, return capped at 25%; 1% loss for every 1% that gold price drops
Initial price:	$1,711.50
Pricing date:	Feb. 10
Settlement date:	Feb. 15
Agents:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	2%
Cusip:	902669399

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