By Angela McDaniels
Tacoma, Wash., Aug. 30 - UBS AG, London Branch priced $200,000 of trigger phoenix autocallable optimization securities due Sept. 7, 2012 linked to the American Depositary Shares of Itau Unibanco Holdings SA, according to a 424B2 filing with the Securities and Exchange Commission.
If Itau Unibanco ADSs close at or above the trigger price - 65% of the initial price - on a semiannual observation date, the issuer will pay contingent coupon at the rate of 12.89% per year for that semiannual period. Otherwise, no coupon will be paid for that period.
If the closing ADSs price is greater than or equal to the initial price on either of the observation dates, the notes will be called at par of $10 plus the contingent coupon.
The payout at maturity will be par plus the contingent coupon if the notes are not called and Itau Unibanco ADSs finish at or above the trigger price. If the ADSs finish below the trigger, investors will be exposed to the decline from the initial price.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying ADSs: | Itau Unibanco Holdings SA (NYSE: ITUB)
|
| Amount: | $200,000
|
| Maturity: | Sept. 7, 2012
|
| Coupon: | 12.89%, payable semiannually if Itau Unibanco ADSs close at or above trigger price on observation date for that semiannual period
|
| Price: | Par of $10.00
|
| Payout at maturity: | If notes are not called and ADSs finish at or above trigger price, par plus contingent coupon; otherwise, full exposure to decline in ADS price
|
| Call: | Automatically at par plus contingent coupon if ADSs close at or above initial price on Feb. 29, 2012 or Aug. 30, 2012
|
| Initial price: | $17.82
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| Trigger price: | $11.58, 65% of initial price
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| Pricing date: | Aug. 30
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| Settlement date: | Sept. 2
|
| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.75%
|
| Cusip: | 90267H184
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