By Toni Weeks
San Diego, July 29 - UBS AG, London Branch priced $300,000 of trigger phoenix autocallable optimization securities due Aug. 6, 2012 linked to the common stock of Occidental Petroleum Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If the price of Occidental stock closes at or above the trigger price - 75% of the initial share price - on any of six bimonthly observation dates, the issuer will pay a contingent coupon of 14.22% per year. Otherwise, no coupon will be paid for that interest 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 Occidental 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
|
| Underlying stock: | Occidental Petroleum Corp. (NYSE: OXY)
|
| Amount: | $300,000
|
| Maturity: | Aug. 6, 2012
|
| Coupon: | 14.22% per year, payable bimonthly, if stock closes at or above trigger price on observation date for that interest 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: | $98.18
|
| Trigger price: | $73.64, 75% of initial price
|
| Call option: | At par plus contingent coupon if share price at or above initial price on any bi-monthly observation date
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| Pricing date: | July 29
|
| Settlement date: | Aug. 3
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.37%
|
| Cusip: | 90268B392
|
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