UBS to price partially protected performance securities linked to index basket

By Laura Lutz

Chicago, Oct. 19 - UBS AG plans to price an issue of performance securities with partial protection due Nov. 9, 2012 linked to a basket of five indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the Dow Jones Euro Stoxx 50 index with a 25% weight, the Nikkei 225 index with a 20% weight, the MSCI Emerging Markets index with a 20% weight, the S&P MidCap 400 index with a 20% weight and the Russell 2000 index with a 15% weight.

If final basket level is at least the initial level, the payout at maturity will be par plus any gain on the basket times a participation rate that will be between 116% and 124%. The exact participation rate will be set at pricing.

If the basket declines by up to 20%, the payout will be par. Investors will lose 1% for each 1% that the basket declines beyond 20%.

The notes are expected to price on Nov. 2 and settle on Nov. 9.

UBS Investment Bank is the underwriter.

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