By Toni Weeks
San Diego, June 21 - UBS AG, London Branch priced $2.84 million of trigger phoenix autocallable optimization securities due June 21, 2012 linked to the common stock of Hewlett-Packard Co., according to a 424B2 filing with the Securities and Exchange Commission.
If the price of HP stock closes at or above the trigger price - 80% of the initial share price - on any of four quarterly observation dates, the issuer will pay a contingent coupon at the rate of 11.47% per year. Otherwise, no coupon will be paid for that quarter.
If the share price is greater than or equal to the initial price on any of the observation dates, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and HP shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Hewlett-Packard Co. (NYSE: HPQ)
|
| Amount: | $2,839,270
|
| Maturity: | June 21, 2012
|
| Coupon: | 11.47% per year, payable quarterly, only if HP closes at or above trigger price on observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If HP shares finish at or above the trigger price, par plus contingent coupon; otherwise, exposure to losses
|
| Call: | At par plus contingent coupon if share price is at or above initial price on any quarterly observation date
|
| Initial share price: | $35.00
|
| Trigger price: | $28.00, 80% of initial share price
|
| Pricing date: | June 17
|
| Settlement date: | June 22
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
|
| Cusip: | 90267X627
|
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