New Issue: UBS prices $550,000 8.55% reverse convertibles linked to Citigroup

By Jennifer Chiou

New York, Oct. 4 - UBS AG, London Branch priced $550,000 of 8.55% annualized reverse convertible notes due April 9, 2013 linked to Citigroup Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par in cash unless Citigroup shares fall below the trigger price of $26.22, 75% of the initial price of $34.96, during the life of the notes and finish below the initial price in which case the payout will be Citigroup shares equal to $1,000 principal amount divided by the initial price.

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

Issuer:	UBS AG, London Branch
Issue:	Reverse convertible notes
Underlying stock:	Citigroup Inc. (Symbol: C)
Amount:	$550,000
Maturity:	April 9, 2013
Coupon:	8.55%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Citigroup shares fall below the trigger price of $26.22, 75% of the initial price, and finish below the initial price, in which case Citigroup shares equal to $1,000 principal amount divided by the initial price
Initial price:	$34.96
Trigger price:	$26.22, 75% of $34.96
Pricing date:	Oct. 4
Settlement date:	Oct. 10
Underwriters:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	0.89%
Cusip:	902674LV0

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