UBS plans $100 million E-Tracs on Wells Fargo Business Development Company index

By Susanna Moon

Chicago, April 1 - UBS AG, Jersey Branch plans to sell $100 million of exchange-traded access securities due April 26, 2041 linked to the Wells Fargo Business Development Company index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will price at par of $25 on April 27.

The coupon will be the sum of the cash distributions for the index constituents during the quarter minus the accrued tracking fee. Interest will be payable quarterly.

The payout at maturity will be par plus any index gain less an accrued tracking fee based on an annual tracking fee of 0.85% per year.

Investors will be exposed to any losses.

The notes will be callable beginning April 30, 2012.

The index is intended to measure the performance of all business development companies listed on the New York Stock Exchange or Nasdaq and that satisfy specified market capitalization and other eligibility requirements.

UBS Securities LLC and UBS Financial Services Inc. are the underwriters.

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