UBS plans capped index knock-out notes tied to S&P 500 via JPMorgan

By Marisa Wong

Madison, Wis., May 22 - UBS AG, London Branch plans to price 0% capped index knock-out notes due June 12, 2013 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If the index's closing level is less than the initial index level by more than 20% on any day during the life of the notes, the payout at maturity will be par plus the index return, which could be positive or negative. Otherwise, the payout will be par plus the greater of the index return and a contingent minimum return of 13%.

In both cases, the payout will be subject to a maximum return of 15%.

The notes (Cusip: 902674HR4) are expected to price May 25 and settle May 31.

UBS Investment Bank is the underwriter, and JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.

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