New Issue: UBS sells $130,000 12.11% three-month reverse convertibles tied to HP

By Marisa Wong

Madison, Wis., Aug. 22 - UBS AG, London Branch priced $130,000 of 12.11% annualized reverse convertible notes due Nov. 27, 2013 linked to Hewlett-Packard Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par in cash unless Hewlett-Packard shares fall below the protection level, 76.1% of the initial price, during the life of the notes and finish below the initial price in which case the payout will be a number of Hewlett-Packard shares equal to $1,000 principal amount divided by the initial share price.

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

Issuer:	UBS AG, London Branch
Issue:	Reverse convertible notes
Underlying stock:	Hewlett-Packard Co. (Symbol: HPQ)
Amount:	$130,000
Maturity:	Nov. 27, 2013
Coupon:	12.11%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Hewlett-Packard shares fall below the protection price and finish below the initial price, in which case 45.0045 Hewlett-Packard shares
Initial price:	$22.22
Protection price:	$16.91, 76.1% of initial price
Exchange ratio:	45.0045
Pricing date:	Aug. 22
Settlement date:	Aug. 27
Underwriters:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	1.75%
Cusip:	90270KAD1

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