By Angela McDaniels
Tacoma, Wash., Feb. 1 - UBS AG, London Branch priced $700,000 of trigger phoenix autocallable optimization securities due Feb. 8, 2013 linked to the common stock of Chesapeake Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Chesapeake Energy stock closes at or above the trigger price - 70.67% of the initial share price - on a monthly observation date, the issuer will pay a contingent coupon for that month at the rate of 16% per year. Otherwise, no coupon will be paid that month.
If the shares close at or above the initial price on a monthly observation date, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Chesapeake Energy shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.
UBS Financial Services Inc. and UBS Investment Bank are the underwriters.
| Issuer: | UBS AG, London Branch
|
| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying stock: | Chesapeake Energy Corp. (NYSE: CHK)
|
| Amount: | $700,000
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| Maturity: | Feb. 8, 2013
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| Coupon: | 16% per year, payable monthly if stock closes at or above trigger price on observation date for that month
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if Chesapeake Energy shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | Automatically at par plus contingent coupon if Chesapeake Energy shares close at or above initial price on a monthly observation date
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| Initial share price: | $20.97
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| Trigger price: | $14.82, 70.67% of initial share price
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| Pricing date: | Feb. 1
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| Settlement date: | Feb. 6
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| Underwriters: | UBS Financial Services Inc. and UBS Investment Bank
|
| Fees: | 1.25%
|
| Cusip: | 90267Y724
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