New Issue: UBS prices $1.5 million 12.34% reverse convertibles linked to Ford

By Jennifer Chiou

New York, Jan. 31 - UBS AG, London Branch priced $1.5 million of 12.34% annualized reverse convertible notes due Aug. 8, 2011 linked to Ford Motor Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par in cash unless Ford shares fall below the trigger price of $11.96, 75% of the initial price of $15.95, during the life of the notes and finish below the initial price in which case the payout will be 62.6959 shares of Ford stock.

UBS Securities LLC and UBS Investment Bank are the agents.

Issuer:	UBS AG, London Branch
Issue:	Reverse convertible notes
Underlying stock:	Ford Motor Co. (Symbol: F)
Amount:	$1.5 million
Maturity:	Aug. 8, 2011
Coupon:	12.34%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Ford shares fall below the trigger price of $11.96, 75% of the initial price, and finish below the initial price, in which case 62.6959 shares of Ford stock
Initial price:	$15.95
Trigger price:	$11.96, 75% of $15.95
Exchange ratio:	62.6959
Pricing date:	Jan. 31
Settlement date:	Feb. 7
Agents:	UBS Securities LLC, UBS Investment Bank
Fees:	0.5%
Cusip:	902674EA4

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