New Issue: UBS prices $260,000 10.41% reverse convertibles tied to Bank of America

By Angela McDaniels

Tacoma, Wash., March 9 - UBS AG, London Branch priced $260,000 of reverse convertible notes due Sept. 13, 2011 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes carry a coupon of 10.41% per year. Interest is payable monthly.

The payout at maturity will be par unless Bank of America stock closes below the trigger price - 80% of the initial share price - during the life of the notes and closes below the initial share price on the final determination date, in which case the payout will be a number of Bank of America shares equal to $1,000 divided by the initial share price.

UBS Securities LLC and UBS Investment Bank are the agents.

Issuer:	UBS AG, London Branch
Issue:	Reverse convertible notes
Underlying stock:	Bank of America Corp. (NYSE: BAC)
Amount:	$260,000
Maturity:	Sept. 13, 2011
Coupon:	10.41%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Bank of America shares fall below trigger price during life of notes and finish below initial price, in which case Bank of America 68.5401 shares
Initial price:	$14.59
Trigger price:	$11.67, 80% of initial price
Pricing date:	March 9
Settlement date:	March 14
Agents:	UBS Securities LLC, UBS Investment Bank
Fees:	2.2%
Cusip:	902674EM8

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