By Angela McDaniels
Tacoma, Wash., June 9 - UBS AG, London Branch priced $4.28 million of 0% trigger phoenix autocallable optimization securities due June 13, 2012 linked to the common stock of Silvercorp Metals Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Silvercorp stock closes at or above the trigger price - 60% of the initial share price - on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at the rate of 20% per year. Otherwise, no coupon will be paid that quarter.
The quarterly observation dates are Sept. 7, Dec. 7, March 7, 2012 and June 7, 2012.
If the share price is greater than or equal to the initial price on a quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Silvercorp 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 from the initial price.
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: | Silvercorp Metals Inc. (NYSE: SVM)
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Amount: | $4,279,270
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Maturity: | June 13, 2012
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Coupon: | Notes pay coupon at rate of 20% per year for each quarter that Silvercorp stock closes at or above trigger price on observation date
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Price: | Par of $10.00
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Payout at maturity: | Par if final Silvercorp share price is greater than or equal to trigger price; otherwise, par plus stock return
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Call: | Automatically at par plus continent coupon if share price is greater than or equal to initial price on any quarterly observation date
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Initial share price: | $9.79
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Trigger price: | $5.87, 60% of initial share price
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Pricing date: | June 7
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Settlement date: | June 10
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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: | 90267X205
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