New Issue: UBS prices $200,000 12.03% reverse convertibles linked to Cree

By Angela McDaniels

Tacoma, Wash., Feb. 24 - UBS AG, London Branch priced $310,000 of reverse convertible notes due May 30, 2014 linked to the common stock of Cree, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes carry a coupon of 12.03% per year. Interest is payable monthly.

The payout at maturity will be par in cash unless Cree shares close below the trigger price, 79% of the initial share price, during the life of the notes and finish below the initial share price, in which case the payout will be a number of Cree shares equal to $1,000 principal amount divided by the initial share price.

UBS Securities LLC and UBS Investment Bank are the underwriters.

Issuer:	UBS AG, London Branch
Issue:	Reverse convertible notes
Underlying stock:	Cree, Inc. (Nasdaq: CREE)
Amount:	$310,000
Maturity:	May 30, 2014
Coupon:	12.03%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Cree shares close below trigger price during life of notes and finish below initial price, in which case 16.3773 Cree shares
Initial share price:	$61.06
Trigger price:	$48.24, 79% of initial share price
Pricing date:	Feb. 24
Settlement date:	Feb. 27
Underwriters:	UBS Securities LLC and UBS Investment Bank
Fees:	1.75%
Cusip:	90270KBD0

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