New Issue: UBS prices $3.26 million 8.25% airbag autocallables linked to Yahoo!

By Angela McDaniels

Tacoma, Wash., Feb. 10 - UBS AG, London Branch priced $3.26 million of 8.25% airbag autocallable yield optimization notes due Feb. 13, 2015 linked to the common stock of Yahoo! Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The notes will be called automatically at par if Yahoo! shares close at or above the initial share price on any quarterly call observation date.

The payout at maturity will be par unless the final share price is less than the conversion price, in which case the payout will be a number of Yahoo! shares equal to $1,000 divided by the conversion price. The conversion price is 85% of the initial share price.

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

Issuer:	UBS AG, London Branch
Issue:	Airbag autocallable yield optimization notes
Underlying stock:	Yahoo! Inc. (Symbol: YHOO)
Amount:	$3,256,000
Maturity:	Feb. 13, 2015
Coupon:	8.25%, payable monthly
Price:	Par
Payout at maturity:	If final share price is less than conversion price, number of Yahoo! shares equal to $1,000 divided by conversion price; otherwise, par
Call:	Automatically at par if Yahoo! shares close at or above initial share price on May 8, 2014, Aug. 11, 2014, Nov. 10, 2014 or Feb. 9, 2015
Initial share price:	$37.23
Conversion price:	$31.65, 85% of initial share price
Pricing date:	Feb. 7
Settlement date:	Feb. 12
Underwriters:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	1.5%
Cusip:	90271T695

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