A story in the Dec. 9 edition of the Prospect News Structured Products Daily omitted "phoenix" from the description of these notes and misstated the coupon payment terms. A corrected version follows.
By Susanna Moon
Chicago, Dec. 9 - UBS AG, London Branch priced $2.45 million of phoenix autocallable optimization securities with contingent protection due Dec. 13, 2011 based on the performance of Amazon.com, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent coupon of 15.4% per year if the stock closes at or above the coupon barrier - 75% of the initial share price - on the observation date for that quarter. Any interest will be payable quarterly.
If Amazon's shares close at or above the initial share price on any quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and the stock finishes at or above 75% of the initial price, the payout at maturity will be par. Otherwise, the payout will be par plus the stock return.
UBS Financial Services Inc. and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Phoenix autocallable optimization securities with contingent protection
|
| Underlying stock: | Amazon.com, Inc. (Nasdaq: AMZN)
|
| Amount: | $2,453,510
|
| Maturity: | Dec. 13, 2011
|
| Coupon: | 15.4% if stock closes at or above the trigger price, payable quarterly
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par if final share price is greater than or equal to trigger price; otherwise, par plus share price return
|
| Call: | At par plus coupon payment if Amazon's shares close at or above the initial price on any quarterly observation date
|
| Initial share price: | $178.05
|
| Trigger price: | $133.54, or 75% of initial price
|
| Pricing date: | Dec. 6
|
| Settlement date: | Dec. 9
|
| Agents: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
|
| Cusip: | 90267F287
|
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