UBS plans trigger yield optimization notes tied to South African rand

By Angela McDaniels

Tacoma, Wash., March 5 - UBS AG, Jersey Branch plans to price trigger yield optimization notes due June 14, 2012 linked to the performance of the South African rand relative to the dollar, according to an FWP filing with the Securities and Exchange Commission.

The three-month notes will carry a coupon of 5% to 6% per year. The exact coupon will be set at pricing. Interest will be payable at maturity.

The payout at maturity will be par of $10 if the final spot rate is at least 92% of the initial spot rate. The spot rate will increase if the rand appreciates relative to the dollar.

If the final spot rate is less than 92% of the initial spot rate, investors will lose 1% for every 1% that the rand depreciates relative to the dollar.

The notes (Cusip: 902669415) are expected to price March 9 and settle March 14.

UBS Financial Services Inc. and UBS Investment Bank are the agents.

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