UBS to price yield optimization notes linked to S&P Depositary Receipts

By Angela McDaniels

Tacoma, Wash., Nov. 29 - UBS AG plans to price yield optimization notes with contingent protection due June 11, 2008 linked to S&P Depositary Receipts, according to an FWP filing with the Securities and Exchange Commission.

Each S&P Depositary Receipt represents a fractional undivided ownership interest in the SPDR Trust, Series I, which is an exchange-traded fund designed to track the performance of the S&P 500 index by investing its assets pro rata in the stocks that make up the S&P 500 index as well as other financial instruments.

The notes will price at the closing price of one S&P Depositary Receipt and will carry a to-be-determined coupon of between 8.25% and 10.25%. Interest will be payable quarterly.

If the closing price of S&P Depositary Receipts falls by more than 25% during the life of the notes, the payout at maturity will be one S&P Depositary Receipt per note. Otherwise, the payout will be par.

The notes are expected to price on Dec. 6 and settle on Dec. 11.

UBS Securities LLC and UBS Financial Services Inc. will be the underwriters.

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