Fortis to price 25.5% knock-in reverse convertibles linked to worst of 'Small Dogs' stock basket

By Laura Lutz

Des Moines, April 9 - Fortis Bank, Cayman Islands Branch plans to price an issue of 25.5% knock-in reverse convertible securities due Oct. 30, 2008 linked to the worst-performing of a "Small Dogs" basket of common stocks, according to a term sheet.

Interest will be payable monthly.

The basket includes Citigroup Inc., General Motors Corp., Merck & Co., Inc., Pfizer Inc. and Verizon Communications Inc.

If each stock stays at or above its knock-in price - 50% of its initial price - during the life of the notes or if each stock finishes at or above its initial price, the payout at maturity will be par.

Otherwise, the payout at maturity will be a number of shares of the worst-performing stock equal to par divided by the initial price of that stock.

The notes will price on April 25 and settle on April 30.

JVB is the distributor.

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