UBS to price 0% partial principal-protected notes linked to six indexes

By Angela McDaniels

Seattle, Aug. 28 - UBS AG plans to sell an issue of 0% partial principal-protected notes linked to a basket of six indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket will include the Dow Jones Euro Stoxx 50 index with a 40% weight, the Nikkei 225 index with a 20% weight, and the FTSE/Xinhua China 25, Korea Kospi 200, MSCI Emerging Markets and Swiss Market indexes, each with a 10% weight.

The notes will price on Sept. 22 and will mature sometime between August 2011 and February 2012, with the exact maturity to be determined at pricing.

If the index return is positive, payout at maturity will be par of $10.00 plus 125% of the return on the index. If the index falls by 20% or less, payout will be par. Investors will lose 1% for each 1% the index falls beyond 20%.

UBS Investment Bank and UBS Financial Services Inc. will be the underwriters.

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