New Issue: UBS prices $6.92 million 11.11% airbag yield optimization notes linked to Cummins

By Jennifer Chiou

New York, Nov. 22 - UBS AG, London Branch priced $6.92 million of 11.11% annualized airbag yield optimization notes due May 24, 2012 linked to the common stock of Cummins Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

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 Cummins shares equal to $1,000 divided by the conversion price. The conversion price is 75% of the initial share price.

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

Issuer:	UBS AG, London Branch
Issue:	Airbag yield optimization notes
Underlying stock:	Cummins Inc. (NYSE: CMI)
Amount:	$6,923,000
Maturity:	May 24, 2012
Coupon:	11.11%, payable monthly
Price:	Par
Payout at maturity:	If final share price is less than conversion price, 14.1804 Cummins shares; otherwise, par
Initial share price:	$94.02
Conversion price:	$70.52, 75% of initial share price
Pricing date:	Nov. 18
Settlement date:	Nov. 23
Underwriters:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	1%
Cusip:	90267M209

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