By Toni Weeks
San Diego, July 15 - UBS AG, London Branch priced $174,000 of trigger phoenix autocallable optimization securities due July 23, 2012 linked to the common stock of SanDisk Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If the price of SanDisk stock closes at or above the trigger price - 65% of the initial share price - on any monthly observation date, the issuer will pay a contingent coupon of 16.14% per year. Otherwise, no coupon will be paid for that month.
If the 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.
If the notes are not called and the SanDisk share price finishes at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to any 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: | SanDisk Corp. (Nasdaq: SNDK)
|
| Amount: | $174,000
|
| Maturity: | July 23, 2012
|
| Coupon: | 16.14% per year, payable monthly, only if SanDisk closes at or above trigger price on observation date for that month
|
| Price: | Par of $10
|
| Payout at maturity: | If SanDisk shares finish at or above the trigger price, par plus contingent coupon; otherwise, exposure to losses
|
| Call option: | At par plus contingent coupon if share price at or above initial price on any monthly observation date
|
| Initial share price: | $41.62
|
| Trigger price: | $27.05, 65% of initial share price
|
| Pricing date: | July 15
|
| Settlement date: | July 20
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.05%
|
| Cusip: | 90267X460
|
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