UBS to price phoenix autocallable notes linked to Brent crude oil

By Jennifer Chiou

New York, Sept. 12 - UBS AG, London Branch plans to price phoenix autocallable notes due Sept. 18, 2013 linked to a Brent crude oil futures contract, according to an FWP with the Securities and Exchange Commission.

If the futures contract closes at or above the trigger level - 65% of the initial price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at a rate that is expected to be 8.5% per year. Otherwise, no coupon will be paid that quarter. The exact rate will be set at pricing.

If the futures contract closes at or above the initial price on a quarterly observation date, the notes will be called at par plus the contingent coupon.

If the notes are not called and the futures contract finishes at or above the trigger level, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the decline from the initial price.

The notes (Cusip: 902674LL2) are expected to price on Sept. 13 and settle on Sept. 18.

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

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