By Toni Weeks
San Diego, Aug. 17 - UBS AG, London Branch priced $200,000 of trigger phoenix autocallable optimization securities due Aug. 24, 2012 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If the price of Apple stock closes at or above the trigger price - 72.51% of the initial share price - on any of six bimonthly observation dates, the issuer will pay a contingent coupon of 13% per year. Otherwise, no coupon will be paid for that period.
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 the Apple share price finishes at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to any 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
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| Underlying stock: | Apple Inc. (Nasdaq: AAPL)
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| Amount: | $200,000
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| Maturity: | Aug. 24, 2012
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| Coupon: | 13% per year, payable bimonthly, if stock closes at or above trigger price on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If notes are not called and shares finish at or above trigger price, par plus contingent coupon; otherwise, full exposure to decline in share price
|
| Initial price: | $380.44
|
| Trigger price: | $275.86, 72.51% of initial price
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| Call: | At par plus contingent coupon if share price at or above initial price on any bimonthly observation date
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| Pricing date: | Aug. 17
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| Settlement date: | Aug. 22
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1%
|
| Cusip: | 90268C440
|
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