By Jennifer Chiou
New York, March 28 - UBS AG, London Branch priced $1 million of trigger phoenix autocallable optimization securities due March 29, 2012 linked to Micron Technology, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Micron stock closes at or above the trigger price - 65% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon of 20%. Otherwise, no coupon will be paid for the quarter.
If the stock closes at or above the initial price on any observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Micron shares finish at or above the trigger price, the payout at maturity will be par.
Investors will be exposed to any losses.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Micron Technology, Inc. (Symbol: MU)
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| Amount: | $1 million
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| Maturity: | March 29, 2012
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| Coupon: | 20% if Micron stock closes at or above the trigger price on observation date; payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If Micron shares finish at or above the trigger price, par; otherwise, exposure to losses
|
| Call option: | At par plus contingent coupon if share price is at or above initial price on any quarterly observation date
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| Initial share price: | $11.51
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| Trigger price: | $7.48, 65% of initial share price
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| Pricing date: | March 24
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| Settlement date: | March 29
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
|
| Cusip: | 90267G699
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