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Published on 2/15/2012 in the Prospect News Structured Products Daily.

New Issue: UBS prices $260,000 trigger autocallable notes tied to SunTrust Banks

By Susanna Moon

Chicago, Feb. 15 - UBS AG, London Branch priced $260,000 of 0% trigger autocallable optimization securities due Feb. 25, 2013 linked to SunTrust Banks, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

If the closing price of SunTrust stock is greater than the initial share price on any monthly observation date, the notes will be called at par plus an annualized return of 19.66%.

If the notes are not called and the shares finish at or above 75% of the initial share price, the payout at maturity will be par.

Otherwise, investors will be fully exposed to any losses.

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

Issuer:UBS AG, London Branch
Issue:Trigger autocallable optimization securities
Underlying stock:SunTrust Banks, Inc. (NYSE: STI)
Amount:$260,000
Maturity:Feb. 25, 2013
Coupon:19.66%, payable monthly
Price:Par of $21.87
Payout at maturity:If final share price is at least trigger price, par; otherwise, full exposure to losses
Call:At par plus an annualized return of 19.66% if SunTrust stock closes above initial price on any monthly observation date
Initial share price:$21.87
Trigger price:$16.40, 75% of initial price
Pricing date:Feb. 15
Settlement date:Feb. 21
Underwriters:UBS Financial Services Inc. and UBS Investment Bank
Fees:1.25%
Cusip:90268H779

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