UBS to price contingent absolute return autocallables linked to oil

By Angela McDaniels

Tacoma, Wash., July 6 - UBS AG, London Branch plans to price 0% contingent absolute return autocallable optimization securities due July 18, 2013 linked to Brent crude oil, according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at par plus an annualized call premium of 13% to 14% if the price of oil closes at or above the initial price on any quarterly observation date. The exact call premium will be set at pricing.

If the notes are not called and the final oil 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 percentage change in the price. Otherwise, investors will be fully exposed to the price decline.

The notes are expected to price July 13 and settle July 18.

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

The Cusip number is 90268U622.

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