By E. Janene Geiss
Philadelphia, Feb. 26 - UBS AG priced a $740,150 issue of 0% autocallable optimization securities with contingent protection due Aug. 31, 2010 linked to the UBS Bloomberg CMCI Components USD Excess Return WTI Crude Oil, 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 17.5%.
The observation dates are May 22, 2009, Aug. 25, 2009, Nov. 23, 2009, Feb. 25, 2010, May 24, 2010 and Aug. 25, 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: | UBS Bloomberg CMCI Components USD Excess Return WTI Crude Oil
|
| Amount: | $740,150
|
| Maturity: | Aug. 31, 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 17.5% to the call date
|
| Initial index level: | 764.285
|
| Trigger level: | 70% of initial level
|
| Pricing date: | Feb. 24
|
| Settlement date: | Feb. 27
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1%
|
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