By Jennifer Chiou
New York, Sept. 27 - UBS AG, London Branch priced $100,000 of trigger phoenix autocallable optimization securities due Oct. 4, 2012 linked to the American Depositary Shares of Petroleo Brasileiro SA, according to a 424B2 filing with the Securities and Exchange Commission.
If Petrobras ADSs close at or above the trigger price - 70% of the initial price - on any monthly observation date, the issuer will pay a contingent coupon of 22.57% per year. Otherwise, no coupon will be paid for that interest period.
If the closing ADS price is greater than or equal to the initial price on any of the observation dates, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Petrobras ADSs finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the 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: | Petroleo Brasileiro SA (NYSE: PBR)
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| Amount: | $100,000
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| Maturity: | Oct. 4, 2012
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| Coupon: | 22.57% per year, payable monthly if ADSs close at or above trigger price on observation date for that monthly interest period
|
| Price: | Par
|
| Payout at maturity: | If notes are not called and ADSs finish at or above trigger price, par plus contingent coupon; otherwise, full exposure to decline in ADS price
|
| Call: | Automatically at par plus contingent coupon if ADS price closes at or above initial price on any monthly observation date
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| Initial ADS price: | $24.00
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| Trigger price: | $16.80, 70% of initial price
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| Pricing date: | Sept. 27
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| Settlement date: | Sept. 30
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.25%
|
| Cusip: | 90268E778
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