By Jennifer Chiou
New York, Aug. 27 - UBS AG priced a $6 million issue of bearish return optimization securities with partial protection due Oct. 31, 2008 linked to the Dow Jones Industrial Average, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par of $10 plus a positive return of 5% for each 1% drop in the index, up to a maximum gain of 26%.
If the index increases by 10% or less, the payout will be par. Investors will lose 1% for each 1% that the index increases beyond 10%.
UBS Investment Bank and UBS Financial Services Inc. are the underwriters.
Issuer: | UBS AG
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Issue: | Bearish return optimization securities with partial protection
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Underlying index: | Dow Jones Industrial Average
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Amount: | $6 million
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Maturity: | Oct. 31, 2008
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par plus a positive return of 5% for each 1% drop in the index, up to a maximum gain of 26%; par if the index increases by 10% or less; loss of 1% for every 1% the index increases beyond 10%
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Initial index level: | 13,235.88
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Pricing date: | Aug. 23
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Underwriters: | UBS Investment Bank, UBS Financial Services Inc.
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Fees: | 1.25%
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