UBS plans enhanced appreciation leveraged notes tied to 30-year swaps

By E. Janene Geiss

Philadelphia, Sept. 9 - UBS AG plans to price an issue of 0% enhanced appreciation leverage securities due Sept. 20, 2012 linked to the 30-year USD swap rate, according to a 424B2 filing with the Securities and Exchange Commission.

If the final swap rate exceeds or is equal to the initial rate plus 35 basis points, the payout will be par of $10.00 multiplied by 55 times any gain on the rate, capped at 36% to 46%. The exact cap will be set at pricing.

If the final swap rate is less than the strike rate, the payout will be par minus 30 times any decrease.

The notes are expected to price Sept. 15 and settle Sept. 18.

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

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