UBS plans trigger yield optimization notes linked to Australian dollar

By Toni Weeks

San Diego, April 4 - UBS AG, Jersey Branch plans to price trigger yield optimization notes due July 12, 2012 linked to the performance of the Australian dollar relative to the dollar, according to an FWP filing with the Securities and Exchange Commission.

The three-month notes will carry a coupon of 4.5% to 5.5% per year. The exact coupon will be set at pricing. Interest will be payable at maturity.

The payout at maturity will be par of $10 if the final spot rate is at least 95% of the initial spot rate. The spot rate will increase if the Australian dollar appreciates relative to the dollar.

If the final spot rate is less than 95% of the initial spot rate, investors will lose 1% for every 1% that the Australian dollar depreciates relative to the dollar.

The notes (Cusip: 902669456) are expected to price April 5 and settle April 12.

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

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