UBS to price 0% principal-protected notes linked to currency basket

By E. Janene Geiss

Philadelphia, Feb. 28 - UBS AG plans to price an issue of zero-coupon principal-protected notes due March 31, 2009 linked to a basket of currencies, according to a 424B2 filing with the Securities and Exchange Commission.

The equally weighted basket includes the dollar/Mexican peso spot exchange rate, the dollar/Brazilian real spot exchange rate, the dollar/Russian ruble spot exchange rate, the dollar/Norwegian krone spot exchange rate and the dollar/Chinese renminbi spot exchange rate.

The payout at maturity will be par plus a participation rate that will be determined at pricing and is expected to be between 300% and 350% for each 1% gain on the basket. Investors will receive at least par.

The notes are expected to price in March.

UBS Investment Bank and UBS Financial Services Inc. will be the underwriters and will receive an underwriting discount of 125 basis points.

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