UBS tenders for €1.75 billion of 11 series by modified Dutch auction

By Susanna Moon

Chicago, Dec. 2 - UBS AG began a tender offer for up to €1.75 billion of 11 series of notes with pricing to be set under a modified Dutch auction.

The subordinated dated tier 2 securities will be priced using a reference security plus a maximum offer spread as follows:

• CHF 650 million 2.375% notes due 2015 using the Interpolated Mid-Swap rate plus 44 basis points;

• CHF 550 million 3.125% notes due 2016 using the Interpolated Mid-Swap rate plus 72 bps;

• CHF 400 million 4.125% notes due 2017 using the Interpolated Mid-Swap rate plus 93 bps;

• €1 billion (€893,054,000 outstanding) 4.5% notes due 2019 using the Interpolated Mid-Swap Rate plus 22 bps; and

• £300 million 5.25% notes due 2021 using the 4% U.K. Treasury gilt due September 2016 plus 128 bps.

The senior unsecured securities will be priced as follows:

• CHF 300 million 2.75% notes due 2016 using the Interpolated Mid-Swap Rate plus 6 bps;

• €1.75 billion (€1,290,849,000 outstanding) 3.5% notes due 2015 using the Interpolated Mid-Swap Rate plus 15 bps;

• €1.5 billion (€1,333,480,000 outstanding) 3.125% notes due 2016 using the Interpolated Mid-Swap Rate plus 15 bps;

• €750 million (€507,515,000 outstanding) 4.75% notes due 2017 using the Interpolated Mid-Swap Rate plus 15 bps;

• ITL 2.5 billion (ITL 641,185,000,000 outstanding) zero-coupon notes due 2027 with a minimum purchase price of 62.5% of par; and

• £500 million 6.375% notes due 2016 using the 4% U.K. Treasury gilt due September 2016 plus 64 bps.

The zero-coupon notes due 2027 were originally issued by Union Bank of Switzerland Finance NV, now UBS Finance (Curacao) NV, and guaranteed by Union Bank of Switzerland, now UBS AG.

The offers will end at noon ET on Dec. 13, with pricing set at 9 a.m. ET on Dec. 16. Settlement will occur on Dec. 18.

UBS Ltd. (+44 0 207 567 0525, email mark-t.watkins@ubs.com or mahmoud.abdelaal@ubs.com) is the lead dealer manager.

Lucid Issuer Services Ltd. (+44 0 20 7704 0880, email ubs@lucid-is.com, attn: Yves Theis/Paul Kamminga) is the tender agent.

UBS is a Zurich-based bank.

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