UBS plans to price performance-tracking securities linked to UBS Bloomberg Constant Maturity Commodity index

By E. Janene Geiss

Philadelphia, Aug. 30 - UBS AG plans to price 0% performance-tracking securities due Sept. 28, 2012 linked to the UBS Bloomberg Constant Maturity Commodity Index Total Return, according to an FWP filing with the Securities and Exchange Commission.

The index, which is designed to be a diversified benchmark for commodities as an asset class, is composed of 28 futures contracts with up to five different investment maturities for each individual commodity. The commodities represented include agriculture, energy, livestock, industrial metals and precious metals.

For each $10 security, the payout at maturity will be $9.875 plus the index return and minus a fee amount. The fee amount will initially be 1.25% and will increase each day by an amount equal to $9.875 plus the index return for that day multiplied by the quotient of 1.5% divided by 365.

Holders may exchange their securities on Oct. 1, 2008; Sept. 30, 2009; Sept. 30, 2010; and Sept. 30, 2011. The redemption amount will be calculated in the same way as the payout at maturity.

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

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