UBS to price 12.5% reverse convertibles linked to United States Steel

By Angela McDaniels

Tacoma, Wash., Oct. 7 - UBS AG, London Branch plans to price reverse convertible notes due April 25, 2011 linked to the common stock of United States Steel Corp., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes will carry an annualized coupon of 12.5%. Interest will be payable monthly.

The payout at maturity will be par unless United States Steel stock falls below the trigger price - 80% of its initial share price - during the life of the notes and finishes below the initial share price, in which case investors will receive a number of United States Steel shares equal to $1,000 divided by the initial share price.

The notes (Cusip 902674CA6) are expected to price Oct. 19 and settle Oct. 22.

UBS Securities LLC and UBS Investment Bank are the underwriters.

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