New Issue: UBS prices $236,000 13.25% reverse convertibles linked to Ford

By Angela McDaniels

Tacoma, Wash., Aug. 13 - UBS AG priced $236,000 of reverse convertible notes due Feb. 18, 2010 linked to the common stock of Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 6.625% for an annualized coupon of 13.25%. Interest is payable monthly.

The payout at maturity will be par unless Ford stock falls below the trigger price - 60% of the initial share price - during the life of the notes and finishes below the initial price, in which case investors will receive a number of Ford shares equal to $1,000 divided by the initial price.

UBS Investment Bank is the underwriter.

Issuer:	UBS AG
Issue:	Reverse convertible notes
Underlying stock:	Ford Motor Co. (NYSE: F)
Amount:	$236,000
Maturity:	Feb. 18, 2010
Coupon:	13.25%, payable monthly
Price:	Par
Payout at maturity:	If Ford stock falls below trigger price during life of notes and finishes below initial price, 129.87 Ford shares; otherwise, par
Initial share price:	$7.70
Trigger price:	$4.62, 60% of initial share price
Pricing date:	Aug. 12
Settlement date:	Aug. 17
Agent:	UBS Investment Bank
Fees:	2.25%

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