By Susanna Moon
Chicago, Aug. 9 - UBS AG, London Branch priced $1.98 million of trigger phoenix autocallable optimization securities due Aug. 9, 2012 linked to Goldcorp Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Goldcorp stock closes at or above the trigger price - 75% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon that quarter at the rate of 15.4% per year.
If the closing 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.
The payout at maturity will be par plus the contingent coupon if the notes are not called and the Goldcorp share price finishes at or above the trigger price. If the shares finish below the trigger, investors will be exposed to the decline.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Goldcorp Inc. (NYSE: GG)
|
| Amount: | $1,984,500
|
| Maturity: | Aug. 9, 2012
|
| Coupon: | 15.4%, payable quarterly if stock closes at or above trigger price on observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If notes are not called and shares finish at or above trigger price, par plus contingent coupon; otherwise, full exposure to decline in share price
|
| Call: | At par plus contingent coupon if share price at or above initial price on any quarterly observation date
|
| Initial price: | $46.34
|
| Trigger price: | $34.76, or 75% of initial price
|
| Pricing date: | Aug. 5
|
| Settlement date: | Aug. 10
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
|
| Cusip: | 90268B400
|
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