New Issue: UBS prices $8.11 million market plus notes linked to Mexican peso

By Angela McDaniels

Tacoma, Wash., May 22 - UBS AG, Jersey Branch priced $8.11 million of 0% market plus notes due May 30, 2013 linked to the performance of the Mexican peso relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.

If the currency return is greater than or equal to negative 15%, the payout at maturity will be par plus the greater of the currency return and 7.9%. Otherwise, investors will be fully exposed to the decline from the initial spot rate.

The currency return will be positive if the peso strengthens relative to the dollar.

UBS Investment Bank is the underwriter. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are dealers.

Issuer:	UBS AG, Jersey Branch
Issue:	Market plus notes
Underlying currency:	Mexican peso relative to dollar
Amount:	$8,113,000
Maturity:	May 30, 2013
Coupon:	0%
Price:	Par
Payout at maturity:	If currency return is greater than or equal to negative 15%, par plus greater of currency return and 7.9%; otherwise, full exposure to decline from initial spot rate
Initial spot rate:	133.7572 pesos per dollar
Pricing date:	May 18
Settlement date:	May 23
Underwriter:	UBS Investment Bank
Dealers:	JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
Fees:	1%
Cusip:	90261JJZ7

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