New Issue: UBS prices $10.74 million 10.71% airbag yield autocallables linked to United Rentals

By Toni Weeks

San Diego, Oct. 17 - UBS AG, London Branch priced $10.74 million of 10.71% airbag autocallable yield optimization notes due Oct. 21, 2013 linked to the common stock of United Rentals, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

The notes will be automatically called at par plus the coupon if the stock closes at or above the initial share price on any quarterly observation date.

If the notes are not called, the payout at maturity will be par unless the final share price is less than the conversion price, in which case the payout will be a number of United Rentals shares equal to $1,000 divided by the conversion price. The conversion price is 60% of the initial share price.

UBS Financial Services Inc. and UBS Investment Bank are the underwriters.

Issuer:	UBS AG, London Branch
Issue:	Airbag autocallable yield optimization notes
Underlying stock:	United Rentals, Inc. (NYSE: URI)
Amount:	$10,739,000
Maturity:	Oct. 21, 2013
Coupon:	10.71%, payable monthly
Price:	Par
Payout at maturity:	Par unless final share price is less than conversion price, in which case 51.9481 United Rentals shares
Call:	Automatically at par plus accrued interest if United Rentals stock closes at or above initial share price on Jan. 14, 2013, April 12, 2013, July 12, 2013 or Oct. 15, 2013
Initial share price:	$32.08
Conversion price:	$19.25, 60% of initial share price
Pricing date:	Oct. 12
Settlement date:	Oct. 17
Underwriters:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	1.5%
Cusip:	90269V637

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