UBS accepts €1.59 billion notes in modified Dutch auction tender offer

By Angela McDaniels

Tacoma, Wash., Dec. 16 - UBS AG accepted €1,586,204,668 of notes in its modified Dutch auction tender offer, according to a company filing with the London Stock Exchange.

As previously reported, the company offered for buy back up to €1.75 billion of 11 series of notes.

The offer began on Dec. 2 and ended at noon ET on Dec. 13. Pricing was set at 9 a.m. ET on Dec. 16, and settlement is expected to occur on Dec. 18.

The company will purchase the following subordinated dated tier 2 securities:

• CHF 162,055,000 of its CHF 650 million outstanding 2.375% notes due 2015 at 102.796, which was determined using the interpolated mid-swap rate plus a clearing spread of 44 basis points;

• CHF 65,995,000 of its CHF 500 million outstanding 3.125% notes due 2016 at 105.538, which was determined using the interpolated mid-swap rate plus a clearing spread of 72 bps;

• CHF 14.66 million of its CHF 400 million outstanding 4.125% notes due 2017 at 110.721, which was determined using the interpolated mid-swap rate plus a clearing spread of 93 bps;

• €511,819,000 of its €893,054,000 outstanding 4.5% notes due 2019 at 102.85, which was determined using the interpolated mid-swap rate plus a clearing spread of 22 bps; and

• £136,921,000 of its £300 million outstanding 5.25% notes due 2021 at 107.684, which was determined using the 4% U.K. Gilts due September 2016 plus a clearing spread of 128 bps.

The company will purchase the following senior securities:

• CHF 73.24 million of its CHF 300 million outstanding 2.75% notes due 2016 at 105.956, which was set using the interpolated mid-swap rate plus a clearing spread of 6 bps;

• €127,015,000 of its €1,290,849,000 outstanding 3.5% notes due 2015 at 104.377, which was set using the interpolated mid-swap rate plus a clearing spread of 15 bps;

• €320,838,000 of its €1,333,480,000 outstanding 3.125% notes due 2016 at 105.050, which was set using the interpolated mid-swap rate plus a clearing spread of 15 bps;

• €48,085,000 of its €507,515,000 outstanding 4.75% notes due 2017 at 112.926, which was set using the interpolated mid-swap rate plus a clearing spread of 15 bps;

• 47.94 billion Italian lire of its 641,185,000,000 lire outstanding zero-coupon notes due 2027 at 65. The minimum purchase price was 62.5; and

• £112,112,000 of its £500 million outstanding 6.375% notes due 2016 at 112.479, which was determined using the 4% U.K. Gilts due September 2016 plus a clearing spread of 64 bps.

The zero-coupon notes due 2027 were originally issued by Union Bank of Switzerland Finance NV, now UBS Finance (Curacao) NV, and guaranteed by Union Bank of Switzerland, now UBS AG.

The exchange rates used are 1.2215 Swiss francs per euro and 0.84409 pound sterling per euro.

The lead dealer manager was UBS Ltd. (44 0 207 567 0525, mark-t.watkins@ubs.com or mahmoud.abdelaal@ubs.com). The tender agent was Lucid Issuer Services Ltd. (44 0 20 7704 0880 or ubs@lucid-is.com, attn: Yves Theis/Paul Kamminga).

UBS is a Zurich-based bank.

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