New Issue: UBS prices $7 million trigger autocallables tied to SPDR S&P 500 ETF

By Marisa Wong

Madison, Wis., Dec. 29 - UBS AG, London Branch priced $7 million of 0% trigger autocallable optimization securities due Dec. 30, 2016 linked to the SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.

If the closing share price on any quarterly observation date is greater than the initial share price, the notes will be called at par of $10 plus a call return of 9.71% per year. The first observation date is Dec. 31, 2012.

If the notes are not called and the final share price is greater than or equal to 60% of the initial share price, the payout at maturity will be par. Otherwise, investors will be fully exposed to the share price decline.

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

Issuer:	UBS AG, London Branch
Issue:	Trigger autocallable optimization securities
Underlying ETF:	SPDR S&P 500 ETF Trust
Amount:	$6,996,210
Maturity:	Dec. 30, 2016
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If final share price is at least 60% of initial share price, par; otherwise, full exposure to share price decline
Call:	Automatically at par plus 9.71% per year if shares close at or above initial share price on any quarterly observation date beginning Dec. 31, 2012
Initial share price:	$124.92
Trigger price:	$74.95, 60% of initial share price
Pricing date:	Dec. 28
Settlement date:	Dec. 30
Underwriters:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	2.5%
Cusip:	90267U854

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