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Published on 2/2/2012 in the Prospect News Structured Products Daily.

New Issue: UBS prices $174,959 16.11% trigger yield optimization notes linked to Alpha Natural

By Toni Weeks

San Diego, Feb. 2 - UBS AG, London Branch priced $174,959 of 16.11% trigger yield optimization notes due Feb. 7, 2013 linked to the common stock of Alpha Natural Resources Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

The face amount of each note will be equal to the initial price of Alpha Natural stock.

The payout at maturity will be par in cash unless the final price of Alpha Natural stock is less than 70% of the initial share price, in which case investors will receive one Alpha Natural share per note.

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

Issuer:UBS AG, London Branch
Issue:Trigger yield optimization notes
Underlying stock:Alpha Natural Resources Inc. (NYSE: ANR)
Amount:$174,959.40
Maturity:Feb. 7, 2013
Coupon:16.11%, payable monthly
Price:Par of $21.64
Payout at maturity:If final share price is less than trigger price, one Alpha Natural share; otherwise, par
Initial share price:$21.64
Trigger price:$15.15, 70% of initial price
Pricing date:Feb. 2
Settlement date:Feb. 7
Agents:UBS Financial Services Inc. and UBS Investment Bank
Fees:2%
Cusip:90267Y773

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