By Toni Weeks
San Diego, Sept. 13 - UBS AG, London Branch priced $100,000 of trigger phoenix autocallable optimization securities due Sept. 20, 2012 linked to the American Depositary Shares of Vale SA, according to a 424B2 filing with the Securities and Exchange Commission.
If Vale ADSs close at or above the trigger price - 60% of the initial price - on any observation date, the issuer will pay a contingent coupon of 12.25% per year. Otherwise, no coupon will be paid for that observation period. The observation dates occur every other month.
If the closing ADS price is greater than or equal to the initial price on any of the observation dates, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Vale ADSs finish 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
|
| Underlying ADSs: | Vale SA (NYSE: VALE)
|
| Amount: | $100,000
|
| Maturity: | Sept. 20, 2012
|
| Coupon: | 12.25% per year, payable every two months, if ADSs close at or above trigger price on observation date for that observation period
|
| Price: | Par
|
| Payout at maturity: | If notes are not called and ADSs finish at or above trigger price, par plus contingent coupon; otherwise, full exposure to decline in ADS price
|
| Initial price: | $26.77
|
| Trigger price: | $16.06, 60% of initial price
|
| Call option: | At par plus contingent coupon if ADS price at or above initial price on any bi-monthly observation date
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| Pricing date: | Sept. 13
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| Settlement date: | Sept. 16
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.37%
|
| Cusip: | 90268E156
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