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Published on 7/30/2010 in the Prospect News Structured Products Daily.

New Issue: UBS prices $5 million performance securities linked to four global indexes

By Jennifer Chiou

New York, July 30 - UBS AG, Jersey Branch priced $5 million of 0% performance securities with partial protection due July 31, 2015 linked to a basket of indexes, according to a 424B2 with the Securities and Exchange Commission.

The basket includes the S&P BRIC 40 index with a 52.5% weight, the Kospi 200 index with a 20% weight, the MSCI Taiwan index with a 20% weight and the MSCI Turkey index with a 7.5% weight.

The payout at maturity will be par of $10 plus any basket gain. Investors will receive par if the basket declines by 15% or less and will lose 1% for every 1% that it declines beyond 15%.

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

Issuer:UBS AG, Jersey Branch
Issue:Performance securities with partial protection
Underlying indexes:S&P BRIC 40 (52.5% weight), Kospi 200 (20% weight), MSCI Taiwan (20% weight), MSCI Turkey (7.5% weight)
Amount:$5 million
Maturity:July 31, 2015
Coupon:0%
Price:Par of $10
Payout at maturity:Par plus any basket gain; par for losses up to 15% and investors will share in losses beyond 15%
Initial levels:S&P BRIC 40 at 2477.49, Kospi 200 at 231.56, MSCI Taiwan at 276.94, MSCI Turkey at 891,770.90
Pricing date:July 28
Settlement date:July 30
Underwriters:UBS Financial Services Inc. and UBS Investment Bank
Fees:3.5%
Cusip:902669175

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