UBS to issue 0% market performance notes linked to index basket

By Angela McDaniels

Seattle, Oct. 30 - UBS AG plans to price an issue of 0% five-year market performance notes linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the FTSE/Xinhua China 25 index with a 20% weight, the Korea Kospi 200 index with a 20% weight, the S&P 500 index with a 15% weight, the MSCI AC Far East ex Japan index with a 15% weight, the MSCI Europe index with a 10% weight, the MSCI 17 EM Countries index with a 10% weight and the Swiss Market index with a 10% weight.

At maturity, investors will receive the positive return, if any, of each basket component, adjusted as per the weight of that basket component. The return will be multiplied by the participation rate, which is expected to be between 133% and 147% and will be determined at pricing.

The payout will be reduced by 1% for each 1% decline in any basket component, adjusted as per the weight of that basket component.

The notes are expected to price in October.

UBS Investment Bank and UBS Financial Services Inc. will be the underwriters and will receive an underwriting discount of 200 basis points.

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