UBS to price 7.25%-11.25% yield optimization notes linked to Colgate-Palmolive

By Jennifer Chiou

New York, Nov. 5 - UBS AG plans to price yield optimization notes with contingent protection due May 29, 2009 linked to the common stock of Colgate-Palmolive Co., according to an FWP filing with the Securities and Exchange Commission.

The notes will have an annualized coupon of 7.25% to 11.25%, with the exact rate to be set at pricing. Interest will be payable quarterly.

If Colgate-Palmolive stock falls below the trigger price - 65% of the initial share price - during the life of the notes, the payout at maturity will be one Colgate-Palmolive share per note. If Colgate-Palmolive stock remains at or above the trigger price, the payout will be par.

The issue is expected to price on Nov. 21 and settle on Nov. 28.

UBS Financial Services Inc. and UBS Investment Bank will be the underwriters.

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