New Issue: UBS prices $1.55 million gold participation notes due 2013 with 22% cap

By Susanna Moon

Chicago, July 17 - UBS AG, Jersey Branch priced $1.55 million 0% gold participation notes due July 25, 2013 linked to the spot price of gold, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par plus any gain in the price of gold, up to a maximum return of 22%.

Investors will receive par if the price of gold falls by up to 15% and will be fully exposed to any losses if the price falls by more than 15%.

UBS Investment Bank is the underwriter with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.

Issuer:	UBS AG, Jersey Branch
Issue:	Gold participation notes
Underlying asset:	Gold
Amount:	$1,551,000
Maturity:	July 25, 2013
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus any gain in gold price, capped at 22%; par if gold price falls by up to 15% and full exposure to losses if it falls by more than 15%
Initial price:	$1,220
Trigger price:	$1,356.175, or 85% of initial price
Pricing date:	July 13
Settlement date:	July 18
Underwriter:	UBS Investment Bank, with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents
Fees:	1%
Cusip:	90261JKK8

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