New Issue: UBS prices $3 million gold participation notes due 2013 with 15% cap

By Toni Weeks

San Diego, March 29 - UBS AG, Jersey Branch priced $3 million 0% gold participation notes due April 5, 2013 linked to the spot price of gold, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par plus any percentage increase in the price of gold, subject to a maximum return of 15%.

Investors will receive par if the price of gold falls by up to 15% and will be exposed to losses from the initial price if it falls by more than 15%.

UBS Investment Bank is the underwriter with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as distributors.

Issuer:	UBS AG, Jersey Branch
Issue:	Gold participation notes
Underlying asset:	Gold
Amount:	$3 million
Maturity:	April 5, 2013
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus any gain in gold price, return capped at 15%; par if gold price falls by up to 15% and full exposure to losses if it falls by more than 15%
Initial price:	$1,692.00
Trigger price:	$1,438.20, 85% of initial price
Pricing date:	March 27
Settlement date:	March 30
Underwriter:	UBS Investment Bank, with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as distributors
Fees:	1%
Cusip:	90261JJM6

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