By Angela McDaniels
Tacoma, Wash., Feb. 17 - UBS AG, London Branch priced $13.52 million of trigger phoenix autocallable optimization securities due Feb. 22, 2012 linked to the common stock of International Paper Co., according to a 424B2 filing with the Securities and Exchange Commission.
If International Paper stock closes at or above the trigger price - 80% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 14.68% per year.
If the share price is greater than or equal to the initial price on an observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and International Paper shares finish at or above the trigger price, the payout at maturity will be par. Otherwise, investors will be exposed to the share price 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: | International Paper Co. (NYSE: IP)
|
| Amount: | $13,522,410
|
| Maturity: | Feb. 22, 2012
|
| Coupon: | 14.68% per year, payable quarterly only if International Paper stock closes at or above the trigger price on the observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If International Paper shares finish at or above the trigger price, par; otherwise, par plus stock return
|
| Call option: | At par plus contingent coupon if share price is greater than or equal to initial price on any quarterly observation date
|
| Initial share price: | $30.01
|
| Trigger price: | $24.01, 80% of initial share price
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| Pricing date: | Feb. 16
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| Settlement date: | Feb. 22
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.5%
|
| Cusip: | 90267G137
|
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