By Susanna Moon
Chicago, Dec. 15 - UBS AG, London Branch priced $1 million of trigger phoenix autocallable optimization securities due Dec. 20, 2012 linked to Itau Unibanco Holdings SA American Depositary Shares, according to a 424B2 filing with the Securities and Exchange Commission.
If the ADS price of Itau Unibanco closes at or above the trigger price - 60% of the initial share price - on any of four quarterly observation dates, the notes will pay a contingent coupon of 10.4% annualized for that period.
If the Itau Unibanco ADS price closes at or above the initial price on an observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Itau Unibanco shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will be exposed to any decline from the initial price.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying ADSs: | Itau Unibanco Holdings SA (NYSE: ITUB)
|
| Amount: | $1 million
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| Maturity: | Dec. 20, 2012
|
| Coupon: | 10.4%, payable quarterly if shares close at or above trigger price on observation date
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if Itau Unibanco shares finish at or above trigger price; otherwise, par plus return
|
| Call: | At par plus contingent coupon if Itau Unibanco shares close at or above initial price on an observation date
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| Initial ADS price: | $18.08
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| Trigger price: | $10.85, 60% of initial share price
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| Pricing date: | Dec. 13
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| Settlement date: | Dec. 16
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
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| Cusip: | 90267U565
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