New Issue: UBS prices $2.51 million trigger autocallables linked to crude oil

By Angela McDaniels

Tacoma, Wash., Dec. 20 - UBS AG, London Branch priced $2.51 million of 0% trigger autocallable optimization securities due Dec. 30, 2014 linked to WTI light sweet crude oil, according to a 424B2 filing with the Securities and Exchange Commission.

If oil closes at or above the initial price on any quarterly observation date, the notes will be called at par of $10 plus a call return of 10% per year.

If the notes are not called and the final price is greater than or equal to 80% of the initial price, the payout at maturity will be par. Otherwise, investors will share fully in losses.

UBS Financial Services Inc. and UBS Investment Bank are the underwriters.

Issuer:	UBS AG, London Branch
Issue:	Trigger autocallable optimization securities
Underlying commodity:	WTI light sweet crude oil
Amount:	$2,505,000
Maturity:	Dec. 30, 2014
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	Par if oil finishes at or above trigger price; otherwise, full exposure to oil's decline
Call:	Automatically at par plus 10% per year if oil closes at or above initial price on March 18, 2014, June 18, 2014, Sept. 18, 2014 or Dec. 23, 2014
Initial price:	$97.80
Trigger price:	$78.24, or 80% of initial price
Pricing date:	Dec. 18
Settlement date:	Dec. 23
Underwriters:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	1.5%
Cusip:	90271R863

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