New Issue: UBS prices $100,000 contingent absolute return autocallables linked to Fortinet

By Angela McDaniels

Tacoma, Wash., June 2 - UBS AG, London Branch priced $100,000 of 0% contingent absolute return autocallable optimization securities due June 9, 2015 linked to the common stock of Fortinet, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call premium of 4.6% if Fortinet stock closes at or above the initial share price on any quarterly observation date.

If the notes are not called and the final share price is greater than or equal to the trigger price, 69.13% of the initial share price, the payout at maturity will be par plus the absolute value of the stock return. Otherwise, investors will be fully exposed to the stock decline.

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

Issuer:	UBS AG, London Branch
Issue:	Contingent absolute return autocallable optimization securities
Underlying stock:	Fortinet, Inc. (Symbol: FTNT)
Amount:	$100,000
Maturity:	June 9, 2015
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	If final share price is greater than or equal to trigger price, par plus absolute value of stock return; otherwise, full exposure to stock decline
Call:	At par plus 4.6% per year if Fortinet stock closes at or above initial share price on any quarterly observation date
Initial share price:	$22.13
Trigger price:	$15.30, 69.13% of initial share price
Pricing date:	June 2
Settlement date:	June 5
Agents:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	1%
Cusip:	90272L170

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