By Jennifer Chiou
New York, May 24 - UBS AG, London Branch priced $4.97 million of trigger phoenix autocallable optimization securities due May 24, 2012 linked to the common stock of Boston Scientific Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Boston Scientific stock closes at or above the trigger price - 75% of the initial share price - on any of four quarterly observation dates, the issuer will pay a contingent coupon of 15.25%. Otherwise, no coupon will be paid for that quarter.
If the stock closes at or above the initial price on any observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Boston Scientific shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Investors will be exposed to any losses.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Boston Scientific Corp. (Symbol: BSX)
|
| Amount: | $4,971,350
|
| Maturity: | May 24, 2012
|
| Coupon: | 15.25% per year, payable quarterly, only if Boston Scientific stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If Boston Scientific shares finish at or above the trigger price, par plus contingent coupon; otherwise, exposure to losses
|
| Call option: | At par plus contingent coupon if share price at or above initial price on any quarterly observation date
|
| Initial share price: | $6.80
|
| Trigger price: | $5.10, 75% of initial share price
|
| Pricing date: | May 20
|
| Settlement date: | May 25
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
|
| Cusip: | 90267B773
|
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