By Angela McDaniels
Tacoma, Wash., July 16 - UBS AG priced $2.91 million of 0% autocallable optimization securities with contingent protection due Jan. 21, 2010 linked to the Amex Gold BUGS index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called if the index closes at or above its initial level on any of six quarterly observation dates. If the notes are called, the redemption amount will be par of $10 plus an annualized call return of 24.79%.
The observation dates are Oct. 14, 2008, Jan. 14, 2009, April 14, 2009, July 14, 2009, Oct. 14, 2009 and Jan. 14, 2010.
If the notes are not called, the payout at maturity will be par unless the index closes below the trigger level - 70% of the initial level - during the life of the notes and finishes below the initial index level, in which case investors will be fully exposed to the decline.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG
|
| Issue: | Autocallable optimization securities with contingent protection
|
| Underlying index: | Amex Gold BUGS
|
| Amount: | $2,912,200
|
| Maturity: | Jan. 21, 2010
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If the index closes below the trigger level during the life of the notes and finishes below the initial level, par minus the index decline; otherwise, par
|
| Call: | Automatically if index closes at or above its initial level on a quarterly observation date; payout will be par plus annualized return of 24.79% to the call date
|
| Initial index level: | 469.33
|
| Trigger level: | 328.53, 70% of initial level
|
| Pricing date: | July 14
|
| Settlement date: | July 17
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
|
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