UBS to price capped knock-out notes linked to basket of 15 stocks

By Angela McDaniels

Tacoma, Wash., May 30 - UBS AG, London Branch plans to price 0% capped knock-out notes due Dec. 4, 2013 linked to a basket of 15 stocks, according to an FWP filing with the Securities and Exchange Commission.

The equally weighted basket includes the common stocks of Caterpillar Inc., Chicago Bridge & Iron Co. NV, Cummins Inc., Deere & Co., Dow Chemical Co., E.I. du Pont de Nemours and Co., Fluor Corp., General Electric Co., NextEra Energy, Inc., Nucor Corp., Rock-Tenn Co., Rockwood Holdings, Inc., Union Pacific Corp., United Parcel Service, Inc. and Wesco International, Inc.

If the final basket level is greater than or equal to the trigger level, the payout at maturity will be par plus the greater of 6% and the basket return, subject to a maximum return of at least 25% that will be set at pricing. If the final basket level is less than the trigger level, investors will be exposed to the decline of the basket from its initial level. The trigger level will be 75% of the initial basket level.

The notes (Cusip: 902674HZ6) are expected to price June 1 and settle June 6.

UBS Investment Bank is the underwriter, and JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are dealers.

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