Svensk prices more Rogers index-linked Elements; ABN Amro plans slate of high-coupon deals

By Sheri Kasprzak

New York, Jan. 8 - Heading up an active session Tuesday, AB Svensk Exportkredit priced two further add-ons to the Elements securities linked to two different Rogers indexes, including a $21.5 million add-on of zero-coupon Elements linked to the Rogers International Commodity Index-Agriculture Total Return and a $9 million add-on of zero-coupon Elements linked to the Rogers International Commodity Index-Total Return.

The add-on to the agriculture total return brings the total to $88.5 million. On Jan. 3, the investment bank priced $7.5 million of the notes at 111.249, $5 million of the notes on Jan. 3 at 111.570, $5 million on Jan. 4 at 111.136 and $4 million on Jan. 7 at 110.019.

The rest of the notes were priced between October and the end of December.

The notes were sold through Nuveen Investments and Merrill Lynch & Co.

"Clearly, they're popular," said one market insider not involved in the offering. "I think more investors probably are looking at commodities and indexes like the Rogers are getting more play these days. It's becoming a more popular structure and from the size, I think it's an indicator that investors really do like commodities."

The notes due 2022 pay par plus the index return, less an annual investor fee of 0.75% times the proportion of days elapsed. Beginning Jan. 28, 2008, the investors may put back the notes at a weekly repurchase date. There is a minimum put requirement of $5 million in notes.

Svensk has registered and may issue up to $250 million of the notes.

The securities are listed on the American Stock Exchange under the symbol "RJA".

The Rogers index represents the value of a basket of 20 agricultural commodity futures contracts and is a sub-index of the Rogers International Commodity index.

Another Rogers-linked add-on

In other Rogers-related add-on news, Svensk priced $9 million in additional zero-coupon Elements, also due 2022, linked to the Rogers International Commodity Index - Total Return.

The latest pricing brings to $36.5 million the total notes sold so far. Svensk may also sell a total of $250 million in these notes, which are also being sold through Nuveen and Merrill.

The notes pay par plus the index return at maturity, less the investor fee, which is equal to 0.75% times the proportion of days elapsed.

The index is a composite, dollar-based total return index representing the value of a basket of commodities consumed in the global economy.

The notes are listed on the American Stock Exchange under the symbol "RJI".

Reverse exchangeables with big coupons

Elsewhere, a slate of reverse exchangeable notes from ABN Amro Bank NV have larger-than-normal coupons.

Announced Tuesday was an issue of 36.5% notes linked to First Solar, Inc. The three-month notes pay par at maturity unless the stock falls below the 75% knock-in level during the life of the notes and ends below the initial share price.

The notes then pay a number of First Solar shares equal to $1,000 divided by the initial share price.

Additionally, ABN Amro plans to price 35% notes linked to the stock of Crocs, Inc. Those notes also have a three-month term, but have a 65% knock-in level. The payout terms are otherwise the same.

Another issue of 35% notes will be linked to shares of Continental Airlines, Inc. Those three-month notes have a 75% knock-in level.

ABN Amro also plans to price 32.3% notes linked to SLM Corp. with a 75% knock-in level and a three-month term, as well as 32.2% notes linked to the stock of Fannie Mae, also with a three-month term and a 75% knock-in level.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.