UBS plans trigger phoenix autocallables on E.I. du Pont de Nemours

By Toni Weeks

San Diego, June 14 - UBS AG, London Branch plans to price trigger phoenix autocallable optimization securities due June 21, 2012 linked to the common stock of E.I. du Pont de Nemours and Co., according to an FWP filing with the Securities and Exchange Commission.

If the price of E.I. du Pont stock closes at or above the trigger price - 80% of the initial share price - on any of four quarterly observation dates, the issuer will pay a contingent coupon of 9% to 11.5% per year. Otherwise, no coupon will be paid for that quarter. The exact rate will be set at pricing.

If the share price is greater than or equal to the initial price on any of the observation dates, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called and the share price finishes at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to any share price decline.

The notes (Cusip: 90267X643) are expected to price June 17 and settle June 22.

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

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