UBS plans 8.25%-10.5% yield optimization notes linked to Exxon

By Angela McDaniels

Tacoma, Wash., Feb. 12 - UBS AG plans to price yield optimization notes with contingent protection due Feb. 28, 2011 linked to the common stock of Exxon Mobil Corp., according to an FWP filing with the Securities and Exchange Commission.

The notes will carry a coupon of 8.25% to 10.5%, with the exact coupon to be set at pricing. Interest will be payable monthly.

Each note will have a face amount that is equal to the closing price of Exxon Mobil stock on the pricing date.

If the final price of Exxon Mobil stock is greater than or equal to the trigger price - 75% of the initial share price - then the payout at maturity will be par. Otherwise, the payout will be one Exxon Mobil share per note.

The notes are expected to price Feb. 23 and settle Feb. 27.

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

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