By Jennifer Chiou
New York, Dec. 6 - UBS AG, London Branch priced $100,000 of trigger phoenix autocallable optimization securities due Dec. 13, 2012 linked to the American Depositary Shares of Vale SA, according to a 424B2 filing with the Securities and Exchange Commission.
If the Vale ADS price closes at or above the trigger price - 80% of the initial price - on a monthly observation date, the issuer will pay a contingent coupon for that monthly period at the rate of 19.08% per year. Otherwise, no coupon will be paid that period.
If the ADS price is at or above the initial price on a monthly observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and the final ADS price is at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the decline from the initial price.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying ADSs: | Vale SA (NYSE: VALE)
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| Amount: | $100,000
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| Maturity: | Dec. 13, 2012
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| Coupon: | 19.08% per year, payable monthly if ADS price closes at or above trigger price on observation date for that monthly period
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if final ADS price is at or above trigger price; otherwise, par plus ADS return
|
| Call: | Automatically at par plus contingent coupon if ADS price is at or above initial price on a monthly observation date
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| Initial share price: | $23.97
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| Trigger price: | $19.18, 80% of initial share price
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| Pricing date: | Dec. 6
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| Settlement date: | Dec. 9
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 1.25%
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| Cusip: | 90267T881
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