UBS to price capped knock-out notes linked to basket of seven stocks

By Angela McDaniels

Tacoma, Wash., Jan. 23- UBS AG, London Branch plans to price 0% capped knock-out notes due Feb. 12, 2014 linked to a basket of common stocks, according to an FWP filing with the Securities and Exchange Commission.

The equally weighted basket includes Akamai Technologies, Inc., Amazon.com, Inc., Broadcom Corp., eBay Inc., Google Inc., Nvidia Corp. and Time Warner Inc.

If the final basket level is greater than or equal to the trigger level, 80% of the initial basket level, then the payout at maturity will be par plus the basket return, subject to a minimum payout of zero and the maximum return, which is expected to be 19.5% and will be set at pricing. If the final basket level is less than the trigger level, then investors will be fully exposed to the basket's decline from its initial level.

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

The notes are expected to price Jan. 25 and settle Jan. 30.

The Cusip number is 902674MC1.

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