UBS plans contingent buffer enhanced notes linked to commodity basket

By Angela McDaniels

Tacoma, Wash., June 11 - UBS AG, Jersey Branch plans to price 0% contingent buffer enhanced notes due June 27, 2013 linked to a basket of commodities, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights of the corn, Brent crude oil and palladium futures contracts.

If the final basket level is greater than or equal to the barrier level, the payout at maturity will be par plus the greater of 5.25% and the basket return, subject to a maximum return of 15%. The barrier level is 80% of the initial level.

If the final basket level is less than the barrier level, investors will be fully exposed to the decline.

The notes (Cusip: 902674JB7) are expected to price June 15 and settle June 20.

UBS Investment Bank is the underwriter, with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as dealers.

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