UBS to price yield optimization notes linked to Whole Foods

By Angela McDaniels

Seattle, May 2 - UBS AG plans to price an offering of yield optimization notes with contingent protection due May 30, 2008 linked to the common stock of Whole Foods Market Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will have of coupon of 9.75% to 10.75%, and interest will be payable quarterly. The exact coupon will be determined at pricing, which is expected to be May 24.

If Whole Foods stock falls below the trigger price during the life of the notes, the payout will be one Whole Foods share per note. If Whole Foods stock remains at or above the trigger price, the payout will be par.

The trigger price will be 75% of the initial share price, and par will equal the initial share price.

UBS Investment Bank and UBS Financial Services Inc. will be the underwriters and will receive a discount of 2%.

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