By Angela McDaniels
Tacoma, Wash., April 29 - UBS AG, London Branch priced $4.52 million of trigger phoenix autocallable optimization securities due April 27, 2012 linked to the common stock of Schlumberger Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
If Schlumberger 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 13.25% 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 Schlumberger 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
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Issue: | Trigger phoenix autocallable optimization securities
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Underlying stock: | Schlumberger Ltd. (NYSE: SLB)
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Amount: | $4,522,230
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Maturity: | April 27, 2012
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Coupon: | 13.25% per year, payable quarterly only if Schlumberger stock closes at or above the trigger price on the observation date for that quarter
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Price: | Par of $10.00
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Payout at maturity: | If Schlumberger shares finish at or above the trigger price, par; otherwise, par plus stock return
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Call option: | At par plus contingent coupon if share price is greater than or equal to initial price on any quarterly observation date
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Initial share price: | $89.38
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Trigger price: | $71.50, 80% of initial share price
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Pricing date: | April 27
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Settlement date: | April 29
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Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
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Fees: | 1.5%
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Cusip: | 90267G806
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