UBS to price trigger return optimization notes linked to ETF basket

By Marisa Wong

Madison, Wis., Jan. 18 - UBS AG, Jersey Branch plans to price 0% trigger return optimization securities due Jan. 31, 2014 linked to a basket of exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the iShares MSCI Emerging Markets index fund with a 40% weight, the iShares MSCI EAFE index fund with a 30% weight and the SPDR S&P 500 ETF Trust with a 30% weight.

If the basket return is positive, the payout at maturity will be par plus double the basket gain, subject to a maximum return of 35% to 40% that will be set at pricing.

If the final basket level is greater than or equal to the trigger level - 75% of the initial level - the payout will be par.

Otherwise, the payout will be par plus the basket return.

The securities (Cusip: 90267F444) will price on Jan. 26 and settle on Jan. 31.

UBS Financial Services Inc. and UBS Investment Bank are the underwriters.

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