By Marisa Wong
Madison, Wis., Oct. 17 – UBS AG, London Branch priced $1 million of 0% trigger autocallable optimization securities due July 20, 2015 linked to WTI crude oil, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus a call return of 8% per year if oil closes at or above the initial price on any quarterly observation date.
If the notes are not called and oil finishes at or above the trigger price, 76% of the initial price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final oil price is less than the initial oil price.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
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| Issue: | Trigger autocallable optimization securities
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| Underlying commodity: | WTI crude oil
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| Amount: | $1 million
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| Maturity: | July 20, 2015
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| Coupon: | 0%
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| Price: | Par of $10.00
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| Payout at maturity: | If final oil price is greater than or equal to trigger level, par; otherwise, full exposure to losses
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| Call option: | At par plus 8% per year if oil closes at or above initial price on any quarterly observation date
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| Initial oil price: | $81.84
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| Trigger price: | $62.20, 76% of initial price
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| Pricing date: | Oct. 15
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| Settlement date: | Oct. 20
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 0.5%
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| Cusip: | 90274B485
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