UBS plans to price 10.3% reverse convertibles linked to Sprint Nextel

By Angela McDaniels

Tacoma, Wash., Jan. 7 - UBS AG, London Branch plans to price reverse convertible notes due April 29, 2011 linked to the common stock of Sprint Nextel Corp., according to an FWP filing with the Securities and Exchange Commission.

The three-month notes are expected to carry an annualized coupon of 10.3%. The exact coupon will be set at pricing. Interest will be payable monthly.

The payout at maturity will be par unless Sprint Nextel stock falls below the trigger price - 80% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Sprint Nextel shares equal to $1,000 divided by the initial share price.

The notes (Cusip 902674DU1) are expected to price Jan. 26 and settle Jan. 31.

UBS Securities LLC and UBS Investment Bank are the underwriters.

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