FACTBOX: UBS writes down $10 bln over subprime debts
(Reuters) - Swiss bank UBS (UBSN.VX) issued a profit warning and cancelled plans for a cash dividend on Monday as the U.S. subprime mortgage meltdown forced it to make one of the largest writedowns by any bank since the subprime crisis broke.
UBS said it had obtained an emergency capital injection from the Singapore government and an unnamed Middle East investor.
Following is a summary of key points of UBS's announcement:
*UBS to take new $10 billion writedown on top of $3.7 billion hit made so far this year related to U.S. subprime mortgages, making it the biggest victim of the crisis to date among major European banks. U.S.-based Citigroup (C.N) expects to write off between $8 billion and $11 billion for subprime debts.
*UBS says may record 2007 full-year loss.
* UBS says to add 19.4 billion Swiss francs ($17 billion) to its BIS Tier 1 capital.
*UBS issues 13 billion francs in capital, with 11 billion francs to be placed with the Government of Singapore Investment Corp (GIC).
*Another 2 billion francs are to be placed with a Middle East investor.
*The two new investors will subscribe to an issue of mandatory convertible notes carrying a coupon of 9 percent until conversion into ordinary shares, which must take place within around two years of the issue.
*UBS says the convertible bond terms have a strike price of between 51.50 francs and 73.60 francs per share upon maturity.
*The convertible bond terms offer the new investors between 177 million and 252 million shares in UBS, depending on the strike price, which corresponds to a stake of between 9 percent and 12 percent in the bank.
*UBS says it would approve the resale of 36.4 million treasury shares previously intended for cancellation, increasing Tier 1 capital by about 2 billion francs.
*The bank will replace the 2007 cash dividend with a bonus stock issue, boosting Tier 1 capital by 4.4 billion francs.
*UBS Chief Executive Marcel Rohner and other top managers are due to address analysts and investors at an investor day in London on Tuesday.
(Reporting by Katie Reid, editing by Elizabeth Fullerton)
