UBS to price 9.25%-12.25% yield optimization notes linked to S&P Depositary Receipts

By Angela McDaniels

Tacoma, Wash., Feb. 3 - UBS AG plans to price yield optimization notes with contingent protection due Aug. 27, 2009 linked to Standard & Poor's Depositary Receipts, according to an FWP filing with the Securities and Exchange Commision.

The six-month notes will carry an annualized coupon of 9.25% to 12.25%, with the exact rate to be set at pricing. Interest will be payable quarterly.

The face amount of each note will be equal to the closing price of one SPDR on the pricing date.

If the final price of the SPDRs is less than 75% of the initial price, then the payout at maturity will be one SPDR per note. Otherwise, the payout will be par.

The notes are expected to price Feb. 23 and settle Feb. 27.

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

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