UBS plans to price trigger phoenix autocallables on Gold Miners ETF

By Marisa Wong

Madison, Wis., Jan. 14 - UBS AG, London Branch plans to price trigger phoenix autocallable optimization securities due July 23, 2014 linked to the Market Vectors Gold Miners exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

If the fund closes at or above the trigger price - 72% to 77% of the initial price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at a rate of 9% per year. Otherwise, no coupon will be paid that quarter.

If the fund 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 fund finishes at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the fund price decline from the initial price.

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

The securities are expected to price on Jan. 18 and settle on Jan. 24.

The Cusip number is 90271B298.

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