New Issue: UBS prices $425,000 contingent buffer enhanced notes linked to euro

By Toni Weeks

San Diego, May 30 - UBS AG, Jersey Branch priced $425,000 of 0% contingent buffer enhanced notes due Nov. 30, 2012 linked to the euro spot rate relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.

If the currency return is positive, the payout at maturity will be par plus the currency return, up to a maximum return of 9.1%.

Investors will receive par if the currency return is negative but equal to or greater than the negative 7% barrier amount.

If the currency return is negative and below the barrier level, investors will be fully exposed to losses.

UBS Investment Bank is the underwriter, with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as agents.

Issuer:	UBS AG, Jersey Branch
Issue:	Contingent buffer enhanced notes
Underlying currency:	Euro, relative to the dollar
Amount:	$425,000
Maturity:	Nov. 30, 2012
Coupon:	0%
Price:	Par
Payout at maturity:	If currency return is positive, par plus currency return, up to maximum return of 9.1%; par if currency return is negative but equal to or greater than negative 7%; full exposure to losses beyond negative 7%
Initial rate:	1.2512
Barrier amount:	Negative 7%
Pricing date:	May 25
Settlement date:	May 31
Underwriter:	UBS Investment Bank, with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as agents
Fees:	0.5%
Cusip:	90261JKA0

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