By Jennifer Chiou
New York, Oct. 29 - UBS AG priced $3.96 million of 0% barrier optimization securities with partial protection due April 29, 2011 linked to the Dow Jones U.S. Real Estate Total Return index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index return is positive and the level never breaches the index barrier - 153% of the initial level - investors will receive par plus the index return, capped at 53%.
If the index closes above its barrier, payout will be par plus 10%.
Investors will receive par for losses up to 10% and will share in any losses beyond 10%.
UBS Financial Services Inc. and UBS Investment Bank will be the underwriters.
| Issuer: | UBS AG
|
| Issue: | Barrier optimization securities with partial protection
|
| Underlying index: | Dow Jones U.S. Real Estate Total Return
|
| Amount: | $3,957,800
|
| Maturity: | April 29, 2011
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus any index gain if index stays below price barrier, capped at 53%; par plus 10% if index closes above barrier; par if index falls by 10% or less and share in losses decline beyond 10%
|
| Initial index level: | 134.8714
|
| Index barrier: | 206.3532, 153% of initial level
|
| Pricing date: | Oct. 27
|
| Settlement date: | Oct. 30
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.75%
|
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