UBS to price 14.5% reverse convertibles linked to United States Steel

By Angela McDaniels

Tacoma, Wash., Jan. 7 - UBS AG, London Branch plans to price reverse convertible notes due July 29, 2011 linked to the common stock of United States Steel Corp., according to an FWP filing with the Securities and Exchange Commission.

The six-month notes are expected to carry an annualized coupon of 14.5%. The exact coupon will be set at pricing. Interest will be payable monthly.

The payout at maturity will be par unless United States Steel stock falls below the trigger price - 80% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of United States Steel shares equal to $1,000 divided by the initial share price.

The notes (Cusip 902674DR8) are expected to price Jan. 26 and settle Jan. 31.

UBS Securities LLC and UBS Investment Bank are the underwriters.

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