New Issue: UBS prices $662,000 20% reverse convertibles linked to Citigroup

By Angela McDaniels

Tacoma, Wash., Oct. 13 - UBS AG priced $662,000 of reverse convertible notes due April 14, 2010 linked to the common stock of Citigroup Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes pay 10% for an annualized coupon of 20%. Interest is payable monthly.

The payout at maturity will be par unless Citigroup stock falls below the trigger price - 65% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Citigroup shares equal to $1,000 divided by the initial share price.

UBS Securities LLC and UBS Investment Bank are the underwriters.

Issuer:	UBS AG
Issue:	Reverse convertible notes
Underlying stock:	Citigroup Inc. (NYSE: C)
Amount:	$662,000
Maturity:	April 14, 2010
Coupon:	20%, payable monthly
Price:	Par
Payout at maturity:	If Citigroup stock falls below trigger price during life of notes and finishes below initial price, 215.9827 Citigroup shares; otherwise, par
Initial share price:	$4.63
Trigger price:	$3.01, 65% of initial price
Pricing date:	Oct. 9
Settlement date:	Oct. 15
Underwriters:	UBS Securities LLC and UBS Investment Bank
Fees:	2.25%

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