By Angela McDaniels
Seattle, Aug. 27 - UBS AG priced a $15.78 million issue of yield optimization notes with contingent protection due Feb. 28, 2008 linked to S&P Depositary Receipts, according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will pay 4.325% for an annualized rate of 8.65%. Interest is payable quarterly.
S&P Depository Receipts represent a fractional undivided ownership interest in the SPDR Trust, series I, which is an exchange-traded fund designed to track the performance of the S&P 500 index by investing its assets pro rata in the equity securities that make up the S&P 500 index as well as other financial instruments.
The payout at maturity will be par of $146.52 if the S&P Depositary Receipts never close below the trigger price - $117.22, or 80% of the initial price - during the life of the notes. If the S&P Depositary Receipts do close below the trigger price, the payout will be one S&P Depositary Receipt per note.
UBS Securities LLC and UBS Financial Services Inc. are the underwriters.
| Issuer: | UBS AG
|
| Issue: | Yield optimization notes with contingent protection
|
| Underlying asset: | S&P Depositary Receipts
|
| Amount: | $15,779,911
|
| Maturity: | Feb. 28, 2008
|
| Coupon: | 8.65%, payable quarterly
|
| Price: | Par of $146.52
|
| Payout at maturity: | Par if S&P Depositary Receipts never close below the trigger price; otherwise, one S&P Depositary Receipt per note
|
| Initial price: | $146.52
|
| Trigger price: | $117.22, 80% of initial price
|
| Pricing date: | Aug. 23
|
| Settlement date: | Aug. 31
|
| Underwriters: | UBS Securities LLC and UBS Financial Services Inc.
|
| Fees: | 1%
|
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