New Issue: UBS prices $124,000 18.75% reverse convertibles linked to Freeport-McMoRan

By E. Janene Geiss

Philadelphia, June 29 - UBS AG priced $124,000 of 18.75% annualized reverse convertible notes due Dec. 31, 2009 linked to Freeport-McMoRan Copper & Gold Inc. shares, according to a 424B filing with the Securities and Exchange Commission.

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

The notes are expected to price on June 26 and settle on June 30.

UBS Investment Bank is the underwriter.

Issuer:	UBS AG
Issue:	Reverse convertible notes
Underlying stock:	Freeport-McMoRan Copper & Gold Inc. (Symbol: FCX)
Amount:	$124,000
Maturity:	Dec. 31, 2009
Coupon:	18.75%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Freeport-McMoRan shares fall below the protection price of $30.33, 60% of the initial price, and finish below the initial price, in which case 19.782 shares of Freeport-McMoRan stock
Initial price:	$50.55
Protection price:	$30.33, 60% of $50.55
Exchange ratio:	19.782
Pricing date:	June 26
Settlement date:	June 30
Agent:	UBS Investment Bank
Fees:	2.25%

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