New Issue: UBS prices $4.4 million contingent absolute return autocallables linked to Brent crude

By Angela McDaniels

Tacoma, Wash., March 27 - UBS AG, London Branch priced $4.4 million of 0% contingent absolute return autocallable optimization securities due April 2, 2013 linked to Brent crude oil futures contracts, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call premium of 15.25% if the settlement price is greater than or equal to the initial price on any quarterly observation date.

If the notes are not called and the final settlement price is greater than or equal to the trigger price, 80% of the initial price, the payout at maturity will be par plus the absolute value of the oil return. Otherwise, investors will be fully exposed to the oil decline.

UBS Financial Services Inc. and UBS Investment Bank are the agents.

Issuer:	UBS AG, London Branch
Issue:	Contingent absolute return autocallable optimization securities
Underlying commodity:	Brent crude oil
Amount:	$4,396,750
Maturity:	April 2, 2013
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	If final settlement price is greater than or equal to trigger price, par plus absolute value of oil return; otherwise, full exposure to oil decline
Call:	At par plus 15.25% per year if settlement price is greater than or equal to initial price on June 25, 2012, Sept. 24, 2012, Dec. 24, 2012 or March 25, 2013
Initial price:	$125.13
Trigger price:	$100.10, 80% of initial price
Pricing date:	March 23
Settlement date:	March 28
Agents:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	1.5%
Cusip:	9026M0465

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