Published on 11/29/2006 in the Prospect News Structured Products Daily.
New Issue: ABN Amro sells $640,000 14% reverse exchangeables linked to RadioShack
By Laura Lutz
Washington, Nov. 29 - ABN Amro Bank NV priced $640,000 of 14% reverse convertible notes due May 31, 2007 linked to RadioShack Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Payment at maturity will be determined according to the performance of RadioShack stock. If the stock trades at or below $14.008, the knock-in price, and closes below $17.51, the initial price, between Nov. 27, 2006 and May 28, 2007, investors will receive a number of RadioShack shares equal to $1,000 divided by the initial stock price. The knock-in price is 80% of the initial price. Otherwise, investors will receive par in cash.
| Issuer: | ABN Amro Bank NV
|
| Issue: | Reverse convertible notes
|
| Underlying stock: | RadioShack Corp.
|
| Amount: | $640,000
|
| Maturity: | May 31, 2007
|
| Coupon: | 14%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If RadioShack stock closes below the knock-in price during the life of the notes and finishes below the initial price, 57.110 shares of RadioShack stock; otherwise par in cash
|
| Initial price: | $17.51
|
| Knock-in price: | $14.008, 80% of initial price
|
| Exchange ratio: | 57.110
|
| Pricing date: | Nov. 27
|
| Settlement date: | Nov. 30
|
| Agent: | ABN Amro Inc.
|
| Agent fee: | 1.75%
|
| Distribution: | Off shelf
|
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