Published on 2/23/2011 in the Prospect News Structured Products Daily.
New Issue: UBS prices $500,000 16.38% reverse convertibles linked to DryShips
By Marisa Wong
Madison, Wis., Feb. 23 - UBS AG, London Branch priced $500,000 of 16.38% annualized reverse convertible notes due May 31, 2011 linked to the common stock of DryShips Inc., according to an FWP filing with the Securities and Exchange Commission.
Interest will be paid in three installments.
The payout at maturity will be par in cash unless DryShips shares fall below the trigger price of $3.64, 75% of the initial price of $4.85, during the life of the notes and finish below the initial price in which case the payout will be 206.1856 shares of DryShips stock.
UBS Securities LLC and UBS Investment Bank are the agents.
| Issuer: | UBS AG, London Branch
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | DryShips Inc. (Symbol: DRYS)
|
| Amount: | $500,000
|
| Maturity: | May 31, 2011
|
| Coupon: | 16.38%, payable in three installments
|
| Price: | Par
|
| Payout at maturity: | Par in cash unless DryShips shares fall below the trigger price and finish below the initial price, in which case 206.1856 shares of DryShips stock
|
| Initial price: | $4.85
|
| Trigger price: | $3.64, 75% of $4.85
|
| Exchange ratio: | 206.1856
|
| Pricing date: | Feb. 23
|
| Settlement date: | Feb. 28
|
| Agents: | UBS Securities LLC and UBS Investment Bank
|
| Fees: | 1.75%
|
| Cusip: | 902674EE6
|
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